BENGALURU: Based on the recommendations of the 15th Finance Commission, the Union Finance Ministry on Monday released Rs 2,200 crore as the first installment to 15 states to improve air quality in their million-plus cities. Karnataka has received Rs 139.5 crore from the funds for Bruhat Bengaluru Mahanagara Palike as urban local body grant.
The entire amount released to Karnataka has been allocated to Bengaluru alone. “This will help the beneficiary States to undertake air quality measures, including capacity-building of the local bodies within their million-plus cities/agglomerations,” the ministry said.
Karnataka also received its second tranche of funds to offset GST compensation cess shortfall along with 15 other states on Monday. The Union Finance Ministry, in a press release, said that Rs 6,000 crore was being released to 16 states and three Union Territories under the special window of borrowing. “This amount was raised at a weighted average yield of 4.42 per cent. This amount will be passed on to the States/UTs at the same interest rate, which is lower than the cost of borrowings for the States and UTs,” the ministry stated.
The allocation for each stage from the Rs 6,000 crore was unclear with the ministry not giving a breakup. Officials of Karnataka finance department too are awaiting details to determine Karnataka’s allocation from the second tranche.