Operationalising Thirteenth Finance Commission Recommendations - Urban
   Administrative Staff College of India

Ministry of Urban Development
Government of India

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The Thirteenth Finance Commission ( 13th FC) recommendations relating to urban local bodies inter alia aim at strengthening municipal finances and urban governance in India. The 13th FC, making a departure from the previous Finance Commissions, divided the grants to be distributed to the states for local bodies into two parts - general basic grant and general performance grant. The performance grant can be accessed only if the state complies with nine conditions, which in other words can be called reforms. They are:

States are given one year i.e., 2010-2011 to comply with these conditions before they can access the performance grant from 2011-2012. Complying with these conditions within the stipulated timeframe, require comprehensive understanding and capacity at the State and ULB level.

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