The 13th Finance Commission recommends that 2.5% of the previous year's tax revenues be given to local bodies in the form of grants.

Basic grant and total special areas grant(in %)

Performance grant(in %)

Aggregate grants to local bodies (Rs crore)

GRANTS MATTER

Source: 13th Finance Commission

1.5 1.5 1.5 1.51.52010-11 2011-12 2012-13 2013-14 2014-15

0.5

8,182 12,724 18,654 22,004 25,955

1 1 1 1