Puri seeks 4x jump in funding for urban bodies from 15th FC

Housing and Urban Affairs Minister Hardeep Puri and his officials, in a meeting with the Fifteenth Finance Commission (15th FC), sought a four-fold increase in the devolution to urban local bodies to improve health infrastructure in light of the Covid-19 pandemic.

In a presentation to the commission, the Ministry of Housing and Urban Affairs (MOHUA) said: “Devolution to municipalities may be increased by at least four times (to ~3.49 trillion) or 9.4 per cent of central taxes.” The presentation was made by Secretary Durga Shanker Mishra.

The videoconference was also attended by 15th FC Chairman NK Singh and members of the Commission. The Commission is expected to submit its second report, for 202122 to 2025-26, by October 31.

In its first report, the 15th FC had recommended states to notify floor rates of property tax and show consistent improvement in property tax collection in tandem with the growth rate of their own GSDP.

“The Commission had intense deliberations on this matter to help the states and ULBS in having an efficient property tax administration, and to address the rampant undervaluation, scarce information, incomplete property registers, policy inadequacy and ineffective administration, and rectify by appropriate fiscal cadastral with objective tax assessment systems that are progressive, buoyant and equitable to all,” said an official statement.

A meeting was held with members of the 15th FC & Chairman

N K Singh