Tamil Nadu News

Finance Panel Funds - TN ULBs

August 28 , 2026 12 hrs 0 min 30 0

The 16th Finance Commission (FC) has recommended more than ₹27,000 crore for Tamil Nadu’s Urban Local Bodies (ULBs) for 2026–31, apart from special infrastructure and urbanisation grants.
A basic grant of ₹20,054 crore will be released from 2026–27.
₹2,507.50 crore each has been recommended as ULB performance grant and State performance grant, with releases from 2027–28 subject to conditions.
Coimbatore and Madurai Municipal Corporations can take up projects worth up to ₹3,500 crore each under the special infrastructure component.
A one-time urbanisation premium of ₹2,000 crore has also been recommended for Tamil Nadu, based on 2011 Census population; it will support urbanisation by merging peri-urban villages with adjoining ULBs.
The Commission has also recommended a ₹791 crore special grant for climate-resilient infrastructure in selected cities, according to the report shown in the source material.