Staff Reporter
GUWAHATI, Sept 23: The 16th Finance Commission (FC) recommended Rs 17,829 crore as grants to rural local bodies (RLBs) and urban local bodies (ULBs) of Assam for a period of five financial years from 2026-27 to 2030-31. Of this amount, Rs 14,580 crore is for RLBs, and the remaining Rs 3,249 crore is for ULBs.
The primary purpose of Finance Commission grants to RLBs and ULBs is to strengthen local self-governance by providing them with assured financial resources to deliver basic public services and maintain local infrastructure. These grants bridge the fiscal gap between the responsibilities assigned to local governments and their limited tax-revenue generation capabilities.
The 16th Finance Commission has already submitted its report to the central government, which has accepted it.
According to the recommendations of the 16th FC, for the year 2026-27, the commission recommended Rs 1,873 crore for the RLBs and Rs 417 crore for the ULBs in Assam. For 2027-28, the FC recommended Rs 2,388 crore for RLBs and Rs 601 crore for ULBs. The FC recommendations are Rs 3,088 crore for RLBs and Rs 668 crore for ULBs for 2028-29, Rs 3,427 crore for RLBs and Rs 741 crore for ULBs for 2029-30, and Rs 3,804 crore for RLBs and Rs 822 crore for ULBs for 2030-31. FC grants for RLBs and ULBs comprise two components each: a basic component and a performance component.
The FCs recommend grants for states for a period of five years to the central government.
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