NEW DELHI: To enhance the performance of urban local bodies (ULBs), the Union Urban Development Ministry has written to state chief secretaries to review their performances. Performance grant of about Rs 17,428 crore will be given to them only after appraisal.
Improving performance of civic bodies also gives political advantage to the BJP which has won civic body polls in many states, including Delhi, Maharashtra and Odissa. A BJP leader said that Centre’s initiative of pushing local bodies for better performance will make the people understand that the party is concerned about public welfare.
Apart from this, it will also work in favour of the BJP-led government at Centre which launched flagship urban projects such as Smart City Mission and Swachh Bharat Mission. If municipal bodies better their performances, the projects will be implemented in a better way.
The Ministry’s letter to local bodies state that they will not be entitled for Centre’s performance grant in case they do not fulfill the performance criteria of delivery of public services and revenue generation.
The Ministry of Finance has mandated the Ministry of urban development to examine and recommend the claims for performance grants as received from states. “Performance grant should be leveraged to encourage ULBs to take up reform measures, which will improve their financial health and service delivery to citizens,” the letter said.
Keeping in view the mandate, a scheme detailing criteria and procedure for releasing performance grants to various ULBs has been formulated by the ministry.
“Urban local bodies are the main implementing agency of flagship government projects on ground. Whether it is cleanliness, solid waste management or infrastructure development, these local bodies play a significant role.
Performance grant will enable initiation of action at the grassroots level and compilation of data so that all stakeholders have access to reliable information,” an official said.
The ULBs are required to self-evaluate and submit their claims by September 30. Thereafter, the state governments are expected to examine and verify the claims and submit a consolidated claim by October 30 to the MoUD which will do a quick evaluation, including a third party verification.