Urban Zonal Grant
Full Form of UZG
What is UZG?
Urban Zonal Grant (UZG) refers to a category of fiscal assistance allocated by central or state governments to urban local bodies in India, targeted at specific geographic zones or municipal clusters. The grant mechanism is designed to channel funds for infrastructure upgrades, sanitation, public health facilities, and civic amenities in designated urban zones, often supplementing larger flagship programmes such as AMRUT and PMAY. The UZG framework typically applies to tier-2 and tier-3 cities where municipal corporations need additional support beyond their own budgetary capacity. It is used by state finance departments, urban development ministries, and planning commissions while preparing annual state budgets and five-year plan documents. For candidates preparing for UPSC, state PSC, or municipal governance examinations, understanding zonal grant structures and tied-versus-untied funding principles is useful, since questions on urban fiscal federalism appear frequently in the economy and governance sections of these competitive exams.
UZG का फुल फॉर्म
शहरी क्षेत्रीय अनुदान
Example
The state government released the Urban Zonal Grant (UZG) of Rs 120 crore to municipal corporations in the eastern zone for upgrading drainage and solid waste management systems.