- The objectives of the Fund are as under(i)Entry Tax devolution on the basis of the orders of the Government of Madhya Pradesh;(ii)Sanction of grants for the corpus for specific purposes;(iii)Channeling of grants received from the Government of Madhya Pradesh or State Finance Commission to urban local bodies,(iv)Intercept mechanism i.e., repayments of instalment of outstanding loan raised by urban local body directly from the Fund to discharge the liability of urban local bodies,(v)Undertaking responsibility for repayment of instalment of new loans being raised by urban local bodies under the tax receipts intercept mechanism.
