The XV Finance Commission recommended Grants in two parts; TIED and UNTIED:
a)UNTIED GRANTS can be used on location specific felt needs under the 18 subjects mentioned in the 12th Schedule of the 74th Constitutional Amendment Act 1992, except for salaries and other establishment needs.
b)TIED GRANTS are to be utilized for supplementing the resources needed to fulfill national priorities. 50% of the TIED GRANT is earmarked for “Sanitation, Solid Waste Management and attainment of Star Ratings” as developed by MOHUA and the other 50% is earmarked for “Drinking Water, Rain Water Harvesting and Water Recycling”. The Tied Grants are provided for supporting and strengthening the delivery of basic services so that the objectives of the grant are fulfilled and cannot be used for any other purpose except as specified.
There are no pre-conditions for release of grants for the year 2020-2021. However, the eligibility conditions for availing the Grants from FY 2021-2022 to 2025-2026 is summarized at Table 9
Table 9 Summary of Eligibility Conditions for availing the Grants
It may be noted that one of the eligibility conditions for availing grants from 2022-2023 onwards is ‘States to notify Property Tax Floor Rates’. In view of the entire section on Property Tax being omitted from the Nagaland Municipal Act 2023, Municipal Affairs Department, Nagaland has requested Ministry of Housing & Urban Affairs for exemption of this particular mandatory condition in respect of Nagaland State. The reply of the Ministry is awaited.
Over the years, through successive Finance Commission Grants, the Centre has been financially empowering the ULBs to deliver basic services to the public, thereby improving Quality of Life in our cities & towns. Various infrastructure works implemented under XV FC Grants by the ULBs during FY 2023-2024 is documented in the following Picture Gallery.