Municipal Finances in India

Municipal Finances in India - Municipal Corporation is the urban local government that is responsible for the development of any Metropolitan City having a population of more than 1 million people.

Municipal Corporations are established in the states by the acts of the state legislatures, whereas in the Union Territories through the acts of the Parliament. Municipal governments rely heavily on property tax revenue to fund their operations.

Reserve Bank has released the Report on Municipal Finances, compiling and analyzing budgetary data for 201 Municipal Corporations (MCs) across all States. The RBI Report explores ‘Alternative Sources of Financing for Municipal Corporations’ as its theme.

Findings 

• Poor Working of MCs
• Absence of Monetary Independence:
•  Negligible Capital Use:
• Insufficient State Monetary Commissions