Internal resource mobilisation : a tool for strengthening ULBs (Also available on CD)

Chodvadia, Kaushikkumar Devrajbhai

Internal resource mobilisation : a tool for strengthening ULBs (Also available on CD) - 2011 - iv,xxx,99,ixp.,CD-ROM

CONTENTS Acknowledgement I Table of Contents II List of Tables V List of Figures VI Abbreviation VII Executive Summary VIII 1 INTRODUCTION 1 1.1 Background 1 1.2 Need of the study 2 1.3 Research questions 3 1.4 Hypothesis 3 1.5 Aim and Objectives 4 1.6 Study Framework and Methodology 4 1.7 Organisation of the Report 5 2 LITERATURE STUDY 7 2.1 Context 7 2.2 Status of ULB Financing 8 2.3 Importance of Local Public Finance 9 2.4 Resources of Local Bodies 10 2.4.1 Revenue Base of Municipalities 10 2.4.2 Expenditure Domain of municipalities 11 2.5 Sources for Local Body Finances 12 2.6 Imbalance of Revenues and Responsibilities 15 2.7 Inter-Governmental Fiscal Transfers 17 2.8 Urban Reform and Development Initiatives 19 2.8.1 Central Government Grants for Infrastructure 19 2.8.2 Initiatives in Gujarat 22 2.9 Summary 23 3 INNOVATIVE PRACTICES FOR RESOURCE MOBILISATION 25 3.1 Defining Innovative Practices 25 3.1.1 Problem of Defining Innovative Practices 25 3.1.2 Characteristics of Genuine Innovative Practices 25 3.1.3 Innovative Practices: Real or Ideal? 26 3.2 Classification of Innovative Practice for Study 26 3.2.1 Direct approach financial benefit 27 3.2.2 Indirect approach for financial benefit 27 3.3 Selected Innovative Practice case related to Finical Management 28 3.3.1 City Bus Service in Surat on PPP Basis 28 3.3.2 Sewage Treatment Plant on BOT basis through Citizens' Participation (Alandur Municipal Corporation, Tamil Nadu) 31 3.3.3 Fund Your City- A Public-Private Partnership Initiative of Greater Hyderabad Municipal Corporation for Urban Infrastructure Development 34 3.3.4 Municipal Debt Management by Vadodara Municipal Corporation 37 3.3.5 Resource Mobilization for Up-gradation of School Infrastructure (Greater Visakhapatnam Municipal Corporation, Andhra Pradesh) 44 3.3.6 Improved Water Service Delivery and Lake Revitalization by Navsari Municipality 46 3.3.7 Revenue Generation through Construction and Auctioning of Shopping Complex, at Gandhidham, Gujarat 50 3.3.8 Street Lighting Energy Efficient Street Lighting System in Vadodara Municipal Corporation 52 3.4 Recommendations for Enhancing Innovative Practices of ULBs 56 3.5 Summary of the various innovative approaches 57 4 MUNICIPAL FINANCE SCENARIO OF SELECTED TOWNS 59 4.1 Selection Criteria for case study municipality 59 4.1.1 Why class A Municipality? 59 4.1.2 Location criteria 60 4.1.3 Demographic and Financial Criteria 61 4.1.4 Other supporting criteria 62 4.2 Nadiad Municipality 63 4.2.1 Introduction 63 4.2.2 Population and Decadal Growth Rate 63 4.2.3 Municipal Finance Scenario of Nadiad 64 4.2.4 Receipt 65 4.2.5 Expenditure 67 4.2.6 Debt Liabilities 68 4.2.7 Nadiad Summary 69 4.3 Navsari Municipality 70 4.3.1 Introduction 70 4.3.2 Population and Decadal Growth Rate 71 4.3.3 Financial details of Navsari Municipality 72 4.3.4 Receipt 72 4.3.5 Expenditure 74 4.3.6 Debt Liabilities 75 4.3.7 Navsari Financial Summary 76 4.4 Summary 77 5 ASSESSMENT OF MUNICIPAL FINANCE 78 5.1 Introduction 78 5.2 Indicator of Analysis 79 5.3 Comparative Analysis 80 5.3.1 Performance of the Municipalities 80 5.4 Summary 86 6 ATTEMPTS TO STRENGTHEN FINANCIAL CONDITION OF ULBS 88 6.1 Introduction 88 6.2 Application on the case study towns. 88 6.2.1 Debt management -a tool for financial sustainability. 88 6.3 Conclusion 96 References 98 ANNEXURE I List of Municipalities of Gujarat i Detail Budget of Navsari Municipality in constant and current price ii Detail Budget of Nadiad Municipality in constant and current price vii

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