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Needed Rs 7.5 lakh crore for flagship urban projects: Ministry to finance commission

NEW DELHI: The Centre will require roughly Rs 7.52 lakh crore for the continued flagship urban schemes for the 5 yr length all over 2020-21 and 2024-25, the urban affairs ministry has told the 15th Finance Commission.

During a session with the contributors of the Finance Commission on Monday, the ministry additionally steered that the municipalities and urban local bodies want greater than four-fold build up in fund all over the 5 yr length from what was once supplied all over the 14th Finance Commission length. It has steered providing around Rs three.5 lakh crore for the municipalities to run their presentations, which is estimated around 2.73% of the online central taxes for 202021 and 2024-25 length.

TOI has learnt that the ministry has told the fee that the Centre plans to double the collection of Smart Cities to 200 all over the following 5 years and therefore will require about Rs 1.4 lakh crore to supply central help. Similarly, it plans to carry smaller cities and towns beneath the AMRUT scheme, which specializes in improving the water provide and sewage control gadget. This will require about Rs 2.5 lakh crore.

Currently, the scheme covers simplest 500 towns and cities that experience a couple of lakh population.

According to resources, the federal government will require about Rs 1.1 lakh crore beneath the PM Awas Yojna to supply financial help to the urban deficient and likewise passion subvention to the middle-income groups. Swachh Bharat and urban livelihood challenge will require about Rs Rs 60,000 crore.

Sources stated the Centre has sought more budget for states and urban local bodies (ULBs) since those entities have lost a large bite of their revenues due to the implementation of the Goods and Service Tax (GST). Fund crunch has a right away hyperlink to the service delivery of municipal bodies.

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