Government of Gujarat 


Basic Services for Urban Poor Programme - BSUP

Basic Services for Urban Poor Programme


Urban poverty reduction, assumes greater importance, at the times of rapid urbanization, in enabling ULBs to become inclusive and pro-poor, thereby, to enhance service delivery and raise productivity. JNNURM, the latest programme undertaken by Government of India, aims to tackle several urban problems, including those relating to urban poverty in a comprehensive manner. One of the key reforms under JNNURM is aligning municipal finances and service delivery to be pro-poor.



BSUP Fund at ULBs acts as a link between fiscal requirements of and needs planning for urban poor. Internal earmarking of ULB funds is the first step towards creation of such Fund, which needs to be complemented by other resources. For better utilistion of the funds, urban poverty reduction strategy and action plan have to be prepared that lead to Medium Term Expenditure Framework (MTEF) and annual expenditure plan for poverty reduction in cities. By this way, an effective linkage can be established between planning and budget, and, thereby, ULB resources can be effectively channelised to urban poverty reduction initiatives in a targeted manner.

Funds have been constituted in India for several purposes with the objective of achieving better fund management and governance. BSUP Fund development through internal earmarking of municipal funds needs an active participation of :-

  • State governments - to provide directives and guidelines to ULBs, and establish support and reporting mechanisms for better implementation.
  • Urban local governments - to establish BSUP Fund through council resolution and legal amendments. The principle for constitution of Fund may be left to the ULB but they need to balance the expenditure and revenue allocations such that enough allocation is made to urban poor within the pool of municipal resources.

The ULBs need to ensure the sustainability of BSUP Fund by ensuring adequate resources left in BSUP Fund by making it non-lapsable and replenishable with a minimum proportion (25%) of net or surplus ULB funds flow into it. All other scheme and programme funds may be subsumed into BSUP Fund. The ULBs need to resort to mobilization of additional revenue sources, wherever possible, to complement the sources of the Fund.

The Basic Services for Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP) under JNNURM aim at integrated provision of following basic amenities and services to the urban poor, especially slum dwellers, in the identified cities:

  • Security of tenure at affordable prices
  • Improved housing
  • Water supply
  • Sanitation
  • Education
  • Health
  • Social security


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Last Update On : 08-January-2020