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One of the important components of non tax revenue is user charge . User charges are still a recent phenomenon and there are not too many enabling provisions in the municipal laws.  User charges act as signals of the scarcity […]

Tax increment financing (TIF) is a flexible instrument for financing urban development, expansion or renewal to stimulate local economic development (LED). It aims at escrowing anticipated revenues from such projects, including tax increments due to their execution to service the […]

Funds from Foreign Direct Investment (FDI) have emerged as a major source of funds in infrastructural projects in India – for instance Japan’s (Japan Bank of International Cooperation) FDI support in developing the Delhi Mumbai Industrial Corridor (DMIC). Under FDI […]

Bilateral and multilateral agencies are international organizations that provide financial assistance to countries for various development projects and programs. These agencies have played a significant role in funding development projects in India. Bilateral agencies provide financial assistance directly to the […]

Reforms in municipal finance have been undertaken in India to improve the financial health and performance of urban local bodies. Some of the key reforms include: The 74th Constitutional Amendment Act of 1992, recognized the importance of local self governments […]

Exogenous : Exogenous Factors which could be responsible for the level of under-spending in ULB these factors are not within the control of concerned ULB Municipal finance assessment considers various exogenous factors that influence the financial health and performance of […]

Endogenous. : factors refer to those that have to do with the ULBs’ own operations which could be responsible for the level of under-spending Endogenous factors refer to the internal factors that impact the financial performance of a municipality. These […]

The Pooled Finance Development Fund (PFDF) is a fund set up by the Government of India in collaboration with the World Bank. Its objective is to support and promote infrastructure development at the state and local level in India. The […]

Only financially strong, large municipal corporations are in a position to directly access capital markets. Most small and medium ULBs are not able to directly access capital markets on the strength of their own balance sheets. Also, the cost of […]