Q.2 The health of municipal finances is a critical element of municipal governance. In context of this, examine the challenges in strengthening the municipal finances and suggest the way forward. (10 Marks)

Mentor’s comment-
  • https://www.thehindu.com/opinion/op-ed/the-scale-of-municipal-finances-is-inadequate/article65631481.ece
  • In the intro, mention that pandemic and implementation of GST have affected the fiscal health of the municipalities.
  • In the body mention that after 74th Constitutional amendment, provisions were made for ULB’s fiscal empowerment. In the next part mention the challenges such as constraints in tax base expansion, weakening of institutional mechanisms, impact of GST on revenue etc. In the suggestions mention need for tapping into property tax, other land based resources and user charges, stable support from state and central government etc.
  • Conclude by mentioning that sound municipal health will a crucial factor in determining whether India realises her economic and developmental goals.
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chandan mahabaliah
chandan mahabaliah
30 days ago

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believing is seeing
believing is seeing
29 days ago