- 8 -Ex-391/2015 “75-A. Constitution of Basic Services to the Urban Poor Fund
(1) A separate fund called the “Basic Services to the Urban Poor Fund” shall be constituted by every Municipality for delivery of basic services to the urban poor including the inhabitants of slum areas.
(2) A minimum of twenty five percent of the funds within the municipality’s budget shall be earmarked and used for providing basic services to the urban poor, including inhabitants of slum areas on a yearly basis. The allocation to the fund shall be made from the following municipal budgetary resources:
(a) Municipality’s own sources of revenue e.g. taxes, fees, user charges and rent etc.;
(b) Assigned revenues;
(c) Allocations from Central / State Finance Commissions/ other inter -governmental transfers;
(d) Contributions in cash/kind, gifts from individuals, organizations, donors for services to the poor;
(e) Grants from externally aided projects;
(f) Sale of municipal assets;
(g) Others sources as determined by the Municipality.
Explanation- For the purpose of this section any grant or contribution by whatever name called, received by the Municipality which is exclusively for the development of slum areas shall not be a part of the above earmarked funds.
(3) Utilization of the earmarked fundsThe earmarked funds under sub-section (1) of this section shall be for providing basic services to the urban poor including the inhabitants of the slum areas.
Explanation- For the purposes of this section ‘basic services’ shall include expenditure on capital and revenue account directly incurred on water supply, drainage, sewerage, construction of community toilets, solid waste management, connecting roads, street lighting, public parks and play grounds, community and livelihood centers, community health centers, pre-primary and primary education centers, affordable housing for poor, and other services as determined by the Municipality but shall not include establishment expenses, including salary and wages, not directly and specifically incurred for delivery of basic services to the poor.
(4) The allocation of the funds and its utilization for providing basic services to the urban poor should be detailed and enclosed with the Municipal Annual Budget as P-budget along with the corresponding figures for the previous year.
(5) The fund shall be in the nature of a non-lapsable fund. In the event of the annual allocations not fully utilized, the balance funds should not be transferred to the municipal general fund but carried forward for utilization in the subsequent year(s). The fund allocation in the subsequent years shall be considered in addition, and shall not be reduced by the unspent funds of the previous year(s).
(6) A separate bank account shall be opened with a nationalized bank called-’Basic Services to Urban Poor Fund’ account wherein funds earmarked under sub-section (1) of this section shall be periodically deposited ensuring that the yearly allocation is equal to the allocation as in the Municipal budget.
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(7) There shall be maintained separate primary books of accounts with detailed accounting heads in line with the National Municipal Accounts Manual for operation of special fund accounts.”