Maharashtra Government Guarantees Full Funding for Civic Amenities Development
State promises 100% funds to corporations for civic amenities
Hindustan Times
Image: Hindustan Times
The Maharashtra government has announced that it will cover 100% of the costs for developing basic civic amenities in municipal corporation areas, a significant change from the previous funding structure. This decision aims to alleviate financial pressures on local bodies following the abolition of Octroi Tax in 2017, while also raising concerns about the impact on the state budget.
- 01Maharashtra will now fund 100% of civic amenities development costs.
- 02This change addresses financial strains on municipal corporations post-Octroi Tax abolition.
- 03Previously, funding was 50% for A+ category corporations and 75% for others.
- 04The Ladki Bahin scheme, providing ₹1500 monthly to over 1.25 crore women, adds pressure to the state budget.
- 05The revision aims to expedite infrastructure projects across the state.
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The Maharashtra government has revised its scheme for the Development of Basic Civic Amenities in Municipal Corporation Areas, now committing to cover 100% of the costs associated with developing essential services and infrastructure. This decision was announced by the state urban development department (UDD) and aims to relieve the financial burdens faced by municipal corporations, particularly after the abolition of the Octroi Tax in 2017. Previously, corporations classified as A+ received 50% funding, while those in A, B, C, and D categories received 75%. The new funding structure is expected to accelerate infrastructure development projects across the state. However, this initiative raises concerns about the impact on the state exchequer, which is already strained by the Ladki Bahin scheme, providing ₹1500 monthly to over 1.25 crore women aged between 21 and 65. A senior UDD official indicated that this move is crucial for enhancing local services and infrastructure.
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This decision is likely to improve infrastructure and essential services in municipal areas, benefiting residents and local businesses.
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