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The scheme was introduced during the year 2010-11 by the State Government to mobilize additional resources for Local Bodies by way of imposing 0.5% surcharge on VAT, collected by Excise and Taxation Department to be distributed in the ratio of 80:20 among Urban Local Bodies and PRIs respectively.  Under the scheme, an amount of Rs.86121.00 lakhs were released during the year 2010-11 to 2015-16. An outlay of Rs.23016.00 lakhs was provided for the year 2016-17, out of which an amount of Rs.123016 lakhs had been released. An amount of Rs.24500.00 lakhs had been released in the year 2017-18. Under the Scheme, an amount of Rs.86079.75 lakhs have been spent during the present Govt. tennure. A budget provision of Rs.28000.00 lakhs has been made for the year 2018-19. An amount of Rs.19600 lakh has been released by now.