Hi Everyone,
Sharing a few key updates from across our work over the past few weeks — spanning the XVI Finance Commission grants for urban India, civic learning in Kurukshetra, new insights from CityFinance, and the commencement of City Leadership Development Program trainings in Uttar Pradesh.
1. Janaagraha’s Analysis of XVI Finance Commission Grants for Urban India:
Delighted to share that nine of our key recommendations have found a place in the XVI Finance Commission’s (FC) report! Our engagement with the XVI FC over the past two years comprised two reports on strengthening finances of urban local governments (ULG) in India, a first-ever national conference of mayors and chairpersons of ULGs, four meetings with the full Commission, and deep collaboration with the secretariat. We are also pleased to see data from www.cityfinance.in, India’s national municipal finance portal conceived and run by us for Government of India, was used extensively by the FC for its analysis. The 2 reports we submitted to the commission are -
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Blueprint for Urban Fiscal Devolution which proposes design principles for predictable and accountable transfers to ULGs; and
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Municipal Finance Blueprint 2.0 which advances recommendations on financial governance reforms.
The conference of mayors and chairpersons, in collaboration with the XVI FC, was organised to understand urban ground realities and needs
The XVI Finance Commission has ushered in a revolution in funding for Urban Local Governments (ULGs) in India.
Its historic allocation of ₹ 3.56 lakh crore (c. USD 39 bn) over five years matches the spending of centrally sponsored schemes over the last thirteen years — combined. At 45% of total local government grants, this represents the highest urban share in Finance Commission history and is a clear recognition of India’s urban future.
Three elements stand out.
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These allocations could mark a pivotal transition towards substantive improvements in first-mile infrastructure and services for citizens, particularly in smaller cities and towns that have historically been under-resourced.
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The significant expansion of untied grants provides ULGs with the flexibility and autonomy to address local needs and priorities.
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The ₹ 10,000 crore Urbanisation Premium, which mandates the formulation of Rural-Urban Transition Policies, brings much-needed focus and incentive to rural-urban transition, which has so far been a fragmented and ad-hoc process.
Headlines from the report:
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Historic allocation to ULGs of ₹ 3.56 lakh crores (c. US$ 39bn)— 2.3x of the ₹ 1.56 lakh crores allocated under XV FC. Urban share of local government grants rises to 45% from 36% in XV FC. Unprecedented quantum and share of grants reflect growing recognition of rapid urbanisation and its implications for India.
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Substantial increase in untied grants to ₹ 1.84 lakh crores (c. US$ 20 bn), empowering ULGs with greater fiscal autonomy. This is 5.5x of the ₹ 33,143 crores under XV FC. This will empower ULGs with greater autonomy to spend flexibly on local needs and priorities. Global evidence suggests public expenditure is far more efficient when devolved closest to citizens.
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Significant incentives for increase in Own-Source Revenues (OSR). Performance grants linked to own-source revenue may potentially lead to a ₹ 40,000 crores increase in OSR in five years. through reforms in levy and collections of fees and user charges for water supply, trade licenses and so on.
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Urbanisation Premium of ₹ 10,000 crores, contingent on formulation of rural-urban transition policies. This will support rapidly urbanising villages particularly in peri-urban areas to transition smoothly into nearby ULGs.
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Sustained focus on reforms to improve fiscal governance and accountability. The 3 entry conditions of timely elections to ULGs, publication of audited accounts on [www.cityfinance.in]www.cityfinance.in, timely constitution of State Finance Commissions, and timely tabling of their Action Taken Reports, have all been retained (huge positive!), and audited Service Level Benchmarks which measure quality of service delivery in ULGs, have been mandated.
Read our analysis: Janaagraha’s Analysis of XVI FC Report
2. City Finance – Blog Article
Did you know that just 7 cities account for nearly 40% of total city expenditure in India?
Indian cities earn revenue from taxes, fees and transfers, which they allocate towards operational expenses and investing in long-term infrastructure to improve urban life.
Looking at the numbers, the aggregate total expenditure of Urban Local Governments declined from ₹2,16,677 crores in FY 2020-21 to ₹2,09,425 crores in 2021-22 — a drop of 3%. Further detailed investigation is required to understand the combination of factors that led to this drop.
The spending patterns of ULGs reveal that the total expenditure of cities with 4M+ people are increasing while that of others are declining or lagging behind.
A staggering 40% of total city expenditure stems from 7 cities that house 17% of the urban population. In comparison, 3,374 cities that house 41% of India’s urban population form just 19% share of the total expenditure.
Per-capita expenditure in India’s largest ULGs is over 4x that of small towns — with megacities spending several times more per urban resident than mid-sized and smaller ULGs.
In our latest blog, we unpack Total Expenditure and how it is a key indicator of a city’s financial stability. The data shows declining urban spending post-pandemic, stark gaps between large and small cities, and deep geographic inequalities.
CityFinance.in is a portal of the Ministry of Housing and Urban Affairs. It is conceived, developed, and managed by Janaagraha. It hosts financial data for more than 4,300 ULGs in India.
Read: CityFinance Post 2
3. Civic Learning: Kurukshetra MoU:
The Kurukshetra Model of the Civic and Social Action Project documents a three-year initiative (2022–2025) that embedded civic learning into the regular functioning of 95 government schools across Kurukshetra district
In its first year, the Civic Social Action Project (CSAP) was piloted in 20 schools, laying the foundation for civic learning and student-led action. In the second year, the program scaled up to 50 schools, focusing on both expansion and strengthening school systems. By the third year, CSAP deepened its engagement in 25 schools, emphasizing qualitative improvements and developing a comprehensive module to enable systematic integration of civic learning into the education system.
Over these three years, CSAP has engaged more than 23,858 students and over 350 educators, including teachers, heads of schools, and master trainers transforming civic learning from an idea into a district-wide movement in Kurukshetra. Behind these numbers lies a deeper story of systemic transformation of schools that have become spaces for participation, of teachers who have rediscovered purpose, and of students who now see themselves not as passive learners but as Sakriya Nagrik (active citizens) capable of shaping change within their communities.
CSAP’s journey demonstrates that when civic learning is embedded meaningfully within the education system, it can do more than build awareness it can strengthen democracy from the ground up.
In this next phase, the focus is clearly on system integration and institutionalisation of CSAP — not on continuing district-level implementation in the earlier format. Our role will be as a knowledge and system-strengthening partner enabling ownership within the district, embedding processes, and supporting capacity so that CSAP runs as part of the system itself.
Read the Impact Report: CSAP Impact Report 2022–2025
YouTube Video: Reimagining Civic Learning in Schools: A Case Study from Kurukshetra
4. City Leadership Development Program (CLDP)
We are pleased to announce the commencement of the City Leadership Development Program (CLDP) trainings for 100 ACP cities across Uttar Pradesh. Through this program, we aim to create a systematic leadership program to empower the elected leaders in the city council, particularly women, for a sustainable urban future.
The Urban Training and Research Institute (UTRI), in collaboration with Janaagraha, is delivering an intensive capacity-building program for 500+ women ward members across the state.
The training content has been customised for Nagar Panchayats incorporating contextual governance realities of smaller ULGs, with additional modules incorporated as per the State’s requirements.
To ensure smooth and high-quality execution, we have trained a strong pool of 6 Master Trainers with expertise in PoSH training, management, MSME, and WASH-related sectors, and strong experience in conducting gender-sensitive trainings.
We look forward to strengthening women’s leadership in urban local governance across Uttar Pradesh.
CLDP began in 2025 and is currently being implemented in 4 states - Karnataka, Odisha, Assam and Uttar Pradesh.
The program began with Needs Assessment Consultations to inform program design. The consultations focused on understanding 3 aspects – knowledge & skills needs, lived realities and preferred methods of delivery. In this process, we engaged with 166 councillors across 4 states (Assam, Odisha, Karnataka and U.P.)
We intend to keep sharing more updates in the future on some of our key initiatives. We would be happy to receive your feedback and inputs. In case of any queries, please reach out to us at [email protected]