Why are Finance Commission grants to cities still so limited?

  • Posted on March 9, 2026
  • By The Hindu
  • 5 Views
Why are Finance Commission grants to cities still so limited?

Despite urban centres generating a large share of GDP and government revenue, the devolution of funds to urban local bodies remains limited, with transfers continuing at around 0.13% of GDP. The 16th Finance Commission links a portion of urban grants to performance conditions and increasing own source revenue, raising concerns about fiscal autonomy and federal intervention in urban development.
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The Hindu

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