₹3.56 lakh crore for urban local bodies
India
Big news for cities: The 16th Finance Commission has recommended over ₹3.56 lakh crore for Urban Local Bodies (ULBs) from 2026 to 2031—more than double the last allocation.
That's nearly half of all local body grants, aiming to boost urban development in a big way.
But there's a catch
This funding could mean better infrastructure and services in your city, but there are strings attached.
ULBs will need to use tech like GIS for property taxes, show steady revenue growth, and keep their councils elected and accountable.
The 16th Finance Commission recommended that states formulate a transparent rural-to-urban transition policy to claim the urbanization premium, hoping this cash actually reaches where it's needed—unlike some past grants that went unused.