The government has already issued orders seeking maintenance of a separate account, `UPA Account’, for these funds which should be used to provide basic amenities, create income-generating opportunities and improve the overall living standards of the urban poor.

Explaining the procedure to estimate the amount of funds to be earmarked for the UPA Account, the government asked the urban local bodies (ULBs) to prepare an estimate of their own revenues to be realised through tax resources, non-tax resources, assigned revenues, non-plan grants, etc for the subsequent financial year.

They have to prepare an estimate of the amount required for maintenance of all civic services including outsourcing of services, office and contingent expenditure and deduct this from total own resources and arrive at the own resources. The pay and allowances and pensions of municipal employees are, however, not included in this calculation.

After ascertaining the amount available for undertaking developmental activities 40 percent of it should be kept in the UPA Account.

These funds should be used for water supply, drainage and sewage, construction of community toilets, solid waste management, roads, streetlighting, parks, community and livelihood centres and to meet cost escalation, if any, in housing and infrastructure schemes and other sanctioned and ongoing projects meant for slums.

In case where UPA funds are not utilised in a particular year, they shall be carried forward to the subsequent year.

The commissioners of all ULBs, except GHMC, shall submit a quarterly progress report to Commissioner and Director of Municipal Administration who forwards it to the government.