Write a short note on enumerate the financial resources of urban local bodies.
Write a short note on enumerate the financial resources of urban local bodies.
Share
Lost your password? Please enter your email address. You will receive a link and will create a new password via email.
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Write a short note on enumerate the financial resources of urban local bodies.
Urban local bodies (ULBs) in India derive their financial resources from various sources to fund their activities and provide essential services to residents. These financial resources can be broadly categorized as follows:
Own Revenue Sources: ULBs generate revenue from sources such as property tax, which is levied on residential and commercial properties based on their assessed value. Other own revenue sources include taxes on advertisements, entertainment, vehicles, and professions, as well as fees and charges for services like water supply, sanitation, building permits, and licenses.
Transfers from State Government: State governments provide grants and financial assistance to ULBs to support their functioning and infrastructure development. These transfers may include grants for basic services, urban development projects, and specific schemes aimed at improving urban infrastructure, public transportation, and environmental sustainability.
Central Government Grants: The central government also provides grants and allocations to ULBs through various programs and schemes, such as the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Smart Cities Mission. These grants are aimed at promoting urban development, improving living standards, and enhancing infrastructure in cities and towns across the country.
Borrowings: ULBs have the authority to borrow funds from financial institutions, including banks and financial markets, to finance capital projects and infrastructure development. Borrowings may be in the form of loans, bonds, or debentures, and are typically secured by the revenue-generating capacity of the ULB or specific projects.
Other Sources: ULBs may also generate revenue from sources such as leasing of municipal assets, sale of land and properties, dividends from municipal corporations and utilities, and donations or contributions from philanthropic organizations or private entities.
Overall, a diverse mix of own revenue sources, transfers from state and central governments, borrowings, and other revenue streams enable urban local bodies to finance their operations, provide essential services, and invest in infrastructure development to meet the growing needs of urban populations.