The Punjab local bodies department disbursed Rs. 96 crore as grant-in-aid among all 148 local bodies in the past month. With this, the total grant-in-aid disbursed among local bodies in the current financial year has reached Rs. 498.44 crore.
Stating this here on Tuesday, Chunni Lal Bhagat, local bodies minister, said this amount was meant to compensate local bodies for the loss of octroi.
The minister said the grant-in-aid was provided to local bodies out of VAT (value-added tax) collections. He said the department had already released Rs. 402 crore to all local bodies in the first quarter of the current fiscal (2013-14).
He said the total amount released to local bodies up to August 7 had touched Rs. 498.44 crore. The respective local bodies, including municipal corporations, municipal councils and panchayats are supposed to use this grant for providing better basic amenities and setting up modern infrastructure.
Bhagat stated that till August 7, the Ludhiana municipal corporation (MC) had been disbursed Rs. 123.25 crore; Jalandhar MC, Rs. 51.99 crore; Amritsar MC, Rs. 43.72 crore; Bathinda MC, Rs. 22.22 crore, SAS Nagar MC, Rs. 17.21 crore; and Patiala MC, Rs. 12.07 crore.