India, Feb. 1 -- The 16th Finance Commission (FC) has recommended a massive boost to India's urban infrastructure, more than doubling the grant for Urban Local Bodies (ULBs) to Rs.3,56,257 crore for the 2026-31 period. This marks a significant jump from the Rs.1.55 lakh crore allocated by its predecessor for the previous five-year term.

The report, prepared by the panel headed by former NITI Aayog vice-chairman Arvind Panagariya, was tabled in Parliament on Sunday.

The funds have been divided into four categories - basic ( Rs. 2,32,125 crore), performance ( Rs. 54,032 crore), special infrastructure ( Rs.56,100 crore) and urbanisation premium ( Rs.10,000 crore).

The commission has increased the urban share within local government grants...