Major initiatives aimed at strengthening urban local agencies (ULBs) and strengthening urban service delivery, the central government has issued a comprehensive guide on the utilization of municipal funds.
The order was issued by S. Suresh Kumar on Monday through Ms. Go No. 75, which was adopted on Monday through Order GO No. 75, aimed at ensuring effective financial management of all ULBs, beginning on April 1, 2025.
In line with the state’s ambitious Swarna Andhra@2047 Vision and India’s Viksit Bharat@2047 mission, the government’s goal is to accelerate GDP growth by more than 15% each year.
Finance Minister Payyavula Keshav announced at the 2025-26 budget meeting that he would recognize the new policy as a key growth hub, giving them greater autonomy over municipal fund management.
The guide classifies expenditures as maintenance and capital investments, targeting key sectors such as public health, sanitation, water supply, roads, drainage and street lights.
Basic Services
ULB is asked to prioritize basic services such as 100% door-to-door waste collection, waterproof water supply, pothole-free roads and fully functional street lights.
Municipalities have been instructed to allocate the lowest portion of their revenue, from 20% to 30%, depending on their performance, to capital expenditure items.
In addition, under the Public Health Act of 1939, income of no less than 30% of the income (excluding government grants) must be specified.
Monitoring mechanism
To ensure accountability, a reliable monitoring mechanism will be set up, including a dedicated spending dashboard linked to the ERP system. Spend review will be conducted by the Municipal Bureau and the State Government every two weeks a month.
Mr. Suresh Kumar stressed strict adherence to these guidelines to change urban governance and provide better services to citizens.
publishing – April 29, 2025 at 05:10 am IST
