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, … Continue reading 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)