Compared to the 2022-23 fiscal, the financial assistance to local bodies increased by 11 per cent in the 2023-24 fiscal. The financial assistance increased from Rs 69,317 crore in 2022-23 to Rs 76,773 crore in 2023-24, the report said.
During 2023-24, the grants-in-aid to Panchayat Raj institutions, Urban Local Bodies (ULBs) totalled to Rs 13,690 crore. This is 18 per cent of the total grants during the year, the CAG report said.
Though there was marginal decline in the assistance extended to panchayat raj institutions and ULBs, the overall assistance to local bodies, including public sector undertakings, autonomous bodies, non-government organisations and others increased considerably.
The CAG report also points out that since 2019-20, there has been a steady increase in the grants-in-aid to the local bodies. The cumulative grants-in-aid increased from Rs 44,967 crore in 2019-20 to Rs 76,773 crore in 2023-24.
The BRS extending substantial financial assistance to local bodies helped them take up several developmental works, with many gram panchayats, mandals and ULBs securing central government awards under different categories.