16th Finance Commission recommends one-time grant to urban local bodies for merging peri-urban villages

16th Finance Commission recommends one-time grant to urban local bodies for merging peri-urban villages

India’s 16th Finance Commission has suggested a single‑time grant for urban local bodies with populations exceeding one lakh. The money would serve as an urbanisation premium, but recipients must meet conditions such as publishing audited financial statements from prior years. The proposal aims to support the merger of peri‑urban villages into city administrations to strengthen governance.