Recognizing the pivotal role of urbanization as a driver of national economic growth, the Fifteenth Finance Commission has suggested reforms for Urban Local Bodies. Evaluate the recommendations put forward by the Fifteenth Finance Commission in promoting and revitalizing ULBs in India.

15th Finance Commission under NK Singh recommended various steps in revitalizing ULBs in India, which is provided under Article 243, 74th constitutional amendment Act. Pivotal role of urbanization as a driver of economic growth: (1) Around 60% of GDP growth provided by Urban entities. (2) Role in rapid industrialisation transformation of the country (dealing with jobless growth). (3) dealing with loss of GDP in natural calamities in rural areas. eg) 4% of GDP lost in disaster.

Recommendations of 15th FC: (1) Increasing reserve share from states to CFE. (2) Broadening of local bond market of Municipal bond of Indore. (3) creating pool of resources for revenue & bond pooling. (4) use of taxing power by the ULBs themselves. evaluation: ive I According to MPI, evaluation 4D/4I1 ULBs face crisis economically. ive II Increasing use of bonds by the ULBs.