Archive · 24 Jul 2026
Odisha Enhances Financial Powers of Urban Local Bodies
The Odisha government has increased the financial powers of urban local bodies, including Bhubaneswar and Rourkela smart cities.
This means the commissioners and executive officers can now approve larger amounts of money for various projects and bills without needing higher approvals.
For example, commissioners can now approve bills up to Rs 1 crore, and executive officers can approve up to Rs 20 lakh.
This change is expected to make it easier and faster to complete civic projects and improve public services.
However, some people worry that giving more financial power to local bodies might lead to mismanagement or hasty decisions.
The Odisha government has enhanced the financial powers of urban local bodies, including Bhubaneswar and Rourkela smart cities.
Commissioners of municipal corporations can now approve bills up to Rs 1 crore, up from Rs 50 lakh in BMC and Rs 15 lakh in other corporations.
The financial limit for administrative approval of works and projects has been increased from Rs 2 crore to Rs 3 crore.
Executive officers of municipalities and Notified Area Councils (NACs) can now approve bills up to Rs 20 lakh, doubled from the previous Rs 10 lakh.
The changes aim to strengthen local governance, reduce procedural delays, and facilitate timely execution of civic infrastructure and public welfare projects.
- Who
- Odisha government
- What
- Enhanced financial powers of urban local bodies
- When
- July 23
- Where
- Odisha, India
- Why
- To strengthen local governance and reduce procedural delays
Supporters of Financial Autonomy
Critics of Increased Powers
Empowerment of Local Governance
Supporters of Financial Autonomy
The enhanced financial powers will strengthen local governance and reduce procedural delays.
Critics of Increased Powers
Increased financial powers may lead to mismanagement and lack of accountability.
Timely Execution of Projects
Supporters of Financial Autonomy
Greater financial autonomy will facilitate the timely execution of civic infrastructure and public welfare projects.
Critics of Increased Powers
There is a risk of hasty decision-making and potential misuse of funds.
- Financial Limit for Commissioners
- Rs 1 crore
- Previous Financial Limit in BMC
- Rs 50 lakh
- Previous Financial Limit in Other Municipal Corporations
- Rs 15 lakh
- Financial Limit for Administrative Approval
- Rs 3 crore
- Payment Authority of Executive Officers
- Rs 20 lakh
- Previous Payment Authority of Executive Officers
- Rs 10 lakh
