Gupta, Manish   <br/><br/>
Strengthening urban governance: Review of Sixteenth Finance Commission grants to urban local bodies 

 - Economic & Political Weekly  
 - 61(19), May 9, 2026: p.51-58 
<br/><br/> Like the earlier finance commissions, the Sixteenth Finance Commission also recommended grants for local bodies. It proposed a substantial increase in local body grants, both in absolute and per capita terms over its predecessor. It recommended a grant of ₹7,91,493 crore for its award period 2026–31, which is about 116% higher than that recommended by the Fifteenth Finance Commission. The commission allocated ₹3,56,257 crore for urban local bodies, reflecting an increased urban share of 45% to address rapid urbanisation and rising service delivery costs. The paper examines the local grants, focusing on grants for ULBs, the conditionalities associated with these grants and highlights issues related to some of the recommendations of the commission. It finds that the recommendations of the Sixteenth Finance Commission represent a mix of timely and progressive interventions alongside notable gaps that fail to adequately address some critical structural concerns.- Reproduced <br/><br/>https://www.epw.in/journal/sixteenth-finance-commission/strengthening-urban-governance.html<br/>