5. SUSTAINABLE URBAN DEVELOPMENT THROUGH INNOVATIVE FINANCING SOLUTIONS

5

SUSTAINABLE URBAN DEVELOPMENT THROUGH INNOVATIVE FINANCING SOLUTIONS

There is a twin dilemma of “what constitutes adequate local government finances?” and “how to mobilize it?”. This is due to growing mismatch between their responsibilities and revenues. Municipal revenues and expenditures are in a state of decline and have not kept pace with the increasing needs of the urban Centres. Average revenue from own sources of Urban Local Bodies (ULBs) to total municipal revenue have declined from 50.92% in 2010-11 to 42.71% in 2017-1835. Over a period of time the dependence on grants have gone up. But with increase in urban population, burden on ULBs have increased to provide basic infrastructure of transport, water, waste management, electricity, roads, etc. In such a scenario, it is crucial for ULBs to become financially sustainable to fulfill aspirations of the citizens and provide adequate basic infrastructure.