Odisha: Urban Local Bodies To Allocate 25% Funds Towards Slum Development

All urban local bodies (ULBs) have been directed by the Odisha Government to spend 25 per cent of their budgetary allocation towards the development of slum areas.

Sangramjit Nayak, Director Municipal Administration (DMA), in a letter to the authorities of 114 ULBs stated, “The Government has made an amendment in the Odisha Municipal Act, 1950 and Odisha Municipal Corporation Act 2003, which made it mandatory for all ULBs to spend a sum of 25 per cent of the amount under capital expenditure relating to development work of annual budget for providing basic service and infrastructure to slums.”

The DMA has asked all ULBs to consider the amendment while drafting their annual budget and said it is obligatory to spend 25 per cent of the funds in the slum regions to provide basic services and infrastructure along with other continuing schemes.

As per the data available with the Housing and Urban Development Department, for two financial years, 2020-21 and 2021-22, an estimated Rs 2,895 crore has been allocated to all 114 ULBs, of which 723.75 crores has to be spent for the development of slums.

On June 18, Chief Minister Naveen Patnaik had announced a COVID package of Rs 1690.46 crore. This fund will be used in the assistance of landless farmers, construction workers, urban poor, tribal people, state food security beneficiaries, National Rural Employment Guarantee Act, 2005 (NREGA) workers, and Divyang students who have been affected by the COVID-19 pandemic.

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