drishti current affairs magazine English
drishti current affairs magazine English This article was published in the month of November Essential services Civic infrastructure and services in most cities and towns are grossly inadequate even for the existing population. o The availability and quality of essential services for urban population depends on the improvement in the financial capacity of municipal corporations. Financial autonomy Undue dependence on central or state government by the MC infringe upon their financial autonomy which in turn also affects their development priorities. Sustainable development Inadequate financing renders municipalities unable to adopt innovative and appropriate technologies for waste treatment and disposal tackling of air and water pollution. Overview of Municipal finance in India The combined budget size of the municipal corporations (MCs) in India is much smaller than that of the Central and State governments. There was no distinct rise in overall municipal revenue in India which remained broadly unchanged from 1946- 47. The composition of municipal revenue in India has changed considerably over time with increased reliance on transfers. The overall borrowing by the MCs is miniscule (less than 0.5%) and their market borrowings through bond issuances is negligible dominated by a few large MCs. 22 Reasons for weaker financial strength of municipalities Data gap Information on the fiscal position of ULBs is scanty as o most municipalities in India do not have balance sheets in public domain o many of them continue to follow cash accounting system o Municipal laws do not prescribe any uniform accounting standard to be followed rendering municipal accounts largely incomparable across States and even within a State. Legal hurdles MCs in India are required by law to maintain a balanced/surplus budget and hence they have not been able to tap capital markets sufficiently to supplement their revenues drishti current affairs magazine buy online.
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