How does the inability of local bodies to generate their own funds affect their ability to function effectively? Suggest necessary measures to empower local governments in generating independent revenue streams.
Main Body
Local bodies were initially benefited through state constitutional amendment. (CAT 243K, Act 243P of Rural & ULB) However, they struggle with fund generation & governance.
Inability to generate funds: reasons
Inability to effect function:
4. Mere implementing agency of state scheme
eg: Smart cities
Necessary measures:
1. Power devolution:
a) Devolution of taxing powers about from basic taxing
eg: housing taxes, road taxes
b) Independent revenue bodies within named ULB/RLB
2. Innovative approaches:
c) Forum for POE municipal corporation eg: BMC (Mumbai)
e) Forum for FOE municipal corporation eg: BMC (Mumbai)
DEEKSHA PATKAR
Federal Structure - Functions, Responsibilities, Devolution of Powers and Finances
Local Self Government
Local bodies revenue generation
243
Total words
5
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