16th Finance Commission recommends ₹27,000cr for TN local bodies

Chennai: Tamil Nadu govt will provide sports jerseys to 23 lakh students studying in govt

Promoting the folk arts

The govt also announced Vetri Tamizhagam vision 2031 covering major urban development plans for next five years from road, drains, parks, water and infrastructure.

Officials said these will be executed from the grants.

According to municipal administration and water supply (MAWS) department policy note for this financial year, presented by minister A Rajmohan on Monday, on behalf of chief minister C Joseph Vijay who heads the department, the commission has recommended a basic grant of ₹20,054 crore, with its release set to begin from 2026-27. The commission has also recommended a one-time urbanisation premium of ₹2,000 per person, based on 2011 Census population, to support the merger of peri-urban villages with adjoining ULBs having a population of one lakh or more. Tamil Nadu received ₹791 crore from central grants last year, the policy note said.

The premium is intended to strengthen administrative capacity, improve civic service delivery and upgrade basic infrastructure in the newly merged areas, the policy note said.

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