Executive Summary:
This document addresses Lok Sabha Unstarred Question No. 4669 regarding the allocation of funds to Akole Nagar Panchayat in Maharashtra under the 15th Finance Commission (FC). It details the allocation process for both Million-Plus Cities (MPCs) and Non-Million Plus Cities (NMPCs), including tied and untied grants. The response outlines steps taken to ensure timely release of funds and provides the status of grants to Maharashtra, up to August 18, 2025.
Key Points / Main Content:
15th Finance Commission (FC) Grants:
The 15th FC recommends grants for urban areas, categorizing them as MPCs (over 1 million population) and NMPCs (under 1 million population) for the award period of 2021-22 to 2025-26.
Akole Nagar Panchayat falls under the NMPC category.
NMPC Grants:
Two types of grants are released to NMPCs: Tied and Untied.
Tied grants are for water supply and sanitation (including Solid Waste Management), split 50:50.
Untied grants are for needs under the 12th Schedule of the Constitution, excluding salaries and establishment costs.
Disbursement:
15th FC grants for NMPCs are disbursed in two equal installments to the State Government annually.
The State Government allocates grants to Urban Local Bodies (ULBs) based on population and area, in a 90:10 ratio, or as per State Finance Commission recommendations.
Status of Maharashtra Grants:
The State Government of Maharashtra has claimed NMPC grants (Tied and Untied) only up to the first installment of FY 2023-24.
Health Grants:
The 15th FC recommended a total health grant of Rs.70,051 crore to all States for rural and urban areas from 2021-22 to 2025-26.
Maharashtra received a recommended health grant of Rs.7,067 crore for the same period.
Rs.3,896.99 crore has been released to Maharashtra as of 18.08.2025 for primary healthcare in rural and urban areas.
Grant Management:
The Government has operationalized an online grant management portal (cityfinance.in) and conducts regular reviews with States to facilitate timely release of 15th FC Grants.
The Ministry of Finance, Department of Expenditure releases funds upon compliance with operational guidelines.
Public Representation:
The Ministry has not received any representation from public representatives for Akole Nagar Panchayat for the second installment of NMPC grants for FY 2023-24.
Impact Analysis:
State Government of Maharashtra:
Impact: Responsible for claiming and allocating the 15th FC grants to ULBs like Akole Nagar Panchayat. Also responsible for forwarding proposals to the National Level Committee for health grant approval and monitoring the utilisation of released health grants.
Action Required: Expedite fulfillment of conditions for uninterrupted flow of grants to eligible ULBs, including Akole Nagar Panchayat. Needs to claim the remaining installments of NMPC grants.
Akole Nagar Panchayat:
Impact: Receives funds for water supply, sanitation, solid waste management, and other developmental works based on the 15th FC recommendations and State Government allocation.
Action Required: Ensure proper utilization of allocated funds and follow up with the State Government for the release of pending installments.
Ministry of Housing and Urban Affairs:
Impact: Oversees the allocation and release of funds under the 15th FC, monitors grant utilization, and facilitates timely release of funds.
Action Required: Continue to monitor the release of funds to the State Government of Maharashtra and ensure compliance with operational guidelines.
Ministry of Finance, Department of Expenditure:
Impact: Releases the health grants based on the approval accorded by the NLC.
Action Required: To continue to release funds promptly upon compliance with stipulated conditions.
Key Entities Referenced
Akole Nagar Panchayat, Maharashtra: A local government body (Nagar Panchayat) located in the state of Maharashtra, India, which is the subject of the question regarding fund allocation.
15th Finance Commission: An Indian constitutional body that recommends the distribution of tax revenues between the Union and the States, and among the States themselves. Its recommendations influence fund allocation to local bodies.
Ministry of Housing and Urban Affairs: The Indian government ministry responsible for policies, programs, and regulations related to housing and urban development in India.
Shirdi Lok Sabha Constituency, Maharashtra: A parliamentary constituency in Maharashtra, India, within which Akole Nagar Panchayat falls.
Non-Million Plus Cities (NMPCs): Urban areas with a population of less than one million, a category used by the 15th Finance Commission for grant allocation.
State Government of Maharashtra: The government of the state of Maharashtra, responsible for allocating funds from the 15th Finance Commission to Urban Local Bodies within the state.
Water Supply and Sanitation including Solid Waste Management (SWM): Areas identified for utilization of Tied grants to Non-Million Plus Cities (NMPCs).
SHRI BHAUSAHEB RAJARAM WAKCHAURE: The Member of Parliament who raised the unstarred question in Lok Sabha regarding the allocation of funds to Akole Nagar Panchayat.
O.I.H.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 4669
TO BE ANSWERED ON AUGUST 21, 2025
ALLOCATION OF FUNDS TO AKOLE NAGAR PANCHAYAT IN
MAHARASHTRA
NO. 4669. SHRI BHAUSAHEB RAJARAM WAKCHAURE:
Will the Minister of HOUSING AND URBAN
AFFAIRS be pleased to state:
(a) whether Akole Nagar Panchayat, falling under the Shirdi Lok Sabha
Constituency in Maharashtra, is a tribal taluka and no funds have
been allocated to the Panchayat under the 15th Finance
Commission for the last one year thereby leading to persistent
issues in water supply, shortage of funds for waste disposal and
procurement of additional machinery despite allocation being due
for these purposes and if so, the details thereof;
(b) whether similar fund shortages under the 15th Finance
Commission have also impacted health services in the said
Panchayat and if so, the details thereof;
(c) whether the Government has taken any steps to ensure that funds
under the 15th Finance Commission are made available to this
Panchayat for all the above works and if so, the details thereof;
(d) whether the Government has received any requests from public
representatives in this regard; and
(e) if so, the details thereof along with the progress made in this
regard so far?
ANSWER
THE MINISTER OF STATE IN THE
MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) & (c): The 15th Finance Commission (15th FC) in its
recommendation for the award period from 2021-22 to 2025-26 has,
inter-alia, recommended grants to two broad categories of urban areas,
namely, Million-Plus Cities (MPCs) with more than 01 million population
and Non-Million Plus Cities (NMPCs) with less than 01 million population.
Akole Nagar Panchayat falls under the category of NMPC. Two types of
grants are released to NMPCs, namely, Tied and Untied grants. Tied
grants are intended to be utilized by NMPCs for the improvement of
Water Supply and Sanitation including Solid Waste Management (SWM),
…2/--2-
which are part of public health, with allocation in the ratio of 50:50 to
water supply and sanitation including SWM. Untied grants are intended
to be utilized by NMPCs based on their felt needs under the 18 subjects
enshrined in the 12th Schedule of the Constitution of India, except for
salaries & other establishment costs. The 15th FC grants for NMPCs are
disbursed in two equal installments for a fiscal year to the State
Government, which in turn allocates the grants to ULBs in NMPCs on the
basis of population and area in the ratio of 90:10 or as per the accepted
recommendations of the State Finance Commission. The State
Government of Maharashtra has been able to claim the NMPCs grants
(Tied and Untied) only up to the first installment of FY 2023-24. The
status of 15th FC recommended Urban Local Bodies grants to the State
of Maharashtra is at Annexure.
The Government has taken steps to facilitate timely release of 15th
FC Grants by operationalizing an online grant management portal
(cityfinance.in) and by conducting regular reviews with States. Funds
are released by the Ministry of Finance, Department of Expenditure upon
compliance with conditions stipulated in the operational guidelines. The
States have been advised to expedite fulfilment of these conditions to
ensure uninterrupted flow of grants to all eligible ULBs including Akole
Nagar Panchayat.
(b): The 15th FC recommended a total health grant of Rs.70,051 crore to
all States for rural and urban areas for its award period from 2021-22 to
2025-26. It has also allocated State-wise, year-wise and component-wise
health grant. As regards Maharashtra, the 15th FC has recommended
health grant of Rs.7,067 crore to the State of Maharashtra for the award
period from 2021-22 to 2025-26. The State Level Committee (SLC) in the
State forwards proposals to the National Level Committee (NLC) for
approval. Ministry of Finance, Department of Expenditure releases the
health grants based on the approval accorded by the NLC. As on
18.08.2025, health grant of Rs.3,896.99 crore has been released to the
State for strengthening and upgrading of primary health care in rural and
urban areas. Utilization of the released health grant is monitored by the
State Level Committee.
(d) & (e): This Ministry has not received representation from any public
representatives for Akole Nagar Panchayat for second installment of
NPMC grants for FY 2023-24.
*****Annexure
ANNEXURE REFERRED TO IN REPLY TO PART (a) AND (c) IN RESPECT OF LOK SABHA UNSTARRED
QUESTION NO. 4669 FOR REPLY ON 21.08.2025 REGARDING ALLOCATION OF FUNDS TO AKOLE NAGAR
PANCHAYAT IN MAHARASHTRA BY SHRI BHAUSAHEB RAJARAM WAKCHAURE
Status of 15th FC recommended Urban Local Bodies grants to the State of Maharashtra
(Rs. in crore)
MPC* NMPC-Tied NMPC-Untied Total
FY Allo-cation Released Allo-cation Released Allo-cation Released Allo-cation Released
2020-21 793.00 793.00 610.00 610.00 610.00 610.00 2,013.00 2,013.00
2021-22 799.00 799.00 553.20 553.20 368.80 368.80 1,721.00 1,721.00
2022-23 827.00 827.00 573.00 573.00 382.00 382.00 1,782.00 1,782.00
2023-24 875.00 0 606.00 296.83 404.00 197.89 1,885.00 494.72
2024-25 928.00 0 642.00 0 428.00 0 1,998.00 0
2025-26 946.00 0 654.60 0 436.40 0 2,037.00 0
Total 5,168.00 2,419.00 3,638.80 2,033.03 2,629.20 1,558.69 11,436.00 6,010.72
* For water supply, sanitation and solid waste management