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15th Finance Commission


Streamlining allocations and improving devolutions

Janaagraha supported the 15th Finance Commission in developing recommendations for Urban Local Bodies that focussed on increasing the quantum of funds granted, tracking grant utilisation through an online portal, creating Municipal Shared Services, improving accounting standards, and concentrating on metropolitan agglomerations.

Program Details

The 15th Finance Commission (FC) deemed it fit to cite from our report and, among other things, accepted the following recommendations:

  • Urban Agglomerations are to be considered as a unit to recognise the metropolitan character of larger cities; only performance grants (and zero untied grants) for million-plus cities. 
  • Timely submission of audited accounts to be treated as an entry criterion for all ULBs to receive any FC grant; accounts to be published in an online, national municipal information system ( 
  • Increase in the share of ULBs from 30% to 35% within the grant for local bodies. 
  • Creation of Municipal Shared Service Centres (MSSCs) shared by municipal clusters.

We worked closely with the Commission on the report, ‘A Municipal Finance Blueprint for India’.  We are also supporting the implementation of the Commission’s recommendations as a project management unit. Additionally, we have contributed to the drafting of operational guidelines for finance commission grants. 
In the past, we have engaged successfully with the 13th and 14th Finance Commissions as well.


Several of our reform recommendations were accepted, impacting grants of Rs. 120,000 crores to cities over five years.

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A Municipal Finance Blueprint for India

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