Financing of urban local bodies in India

Abstract

The rising level of urbanisation in India draws attention to inadequate infrastructure levels in urban areas. While many factors play a role in infrastructure development, this paper examines the financial requirements for such growth. The paper examines the broad fiscal position of urban local bodies in India and the arrangement under different five year plans and various Commissions - central and state. Considering India's growth prospects on the horizon, and the ensuing financing requirements, this paper eventually makes some suggestions in an attempt to enhance the municipal bond financing market and contribute towards infrastructural development.