Funds to support rural and urban local bodies, strengthen disaster management preparedness
Finance Minister Nirmala Sitharaman on Sunday said the Centre has provided ₹1.4 lakh crore to states as Finance Commission grants for 2026–27, underscoring continued fiscal support to sub-national governments.
“I have provided 1.4 lakh crore to the states for the year 2026-27 as Finance Commission grants. These include rural and urban local body and disaster management grants,” FM Nirmala Sitharaman said.
Presenting the Union Budget 2026, Sitharaman said the allocation includes grants for rural and urban local bodies, as well as disaster management, aimed at improving grassroots governance and enhancing resilience against natural calamities.
The finance minister said the funds will help states strengthen basic civic infrastructure, improve service delivery at the local level, and build capacity to respond more effectively to disasters.
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