07-08-2016, 10:54 AM
This study commissioned by the National Institute of Urban Affairs (NIUA) under the United States Agency for International Development - Financial Institutional Reform Expansion (USAID-FIRE) project aims to address the following debt financing issues at the level of municipal corporations in India. Some of these issues are: the legal and statutory frameworks within which municipal corporations are allowed to borrow from the market; the role of debt financing in capital expenditure; fiscal health and gross fiscal deficit; the structure and form of debt borrowing, debt servicing profile, debt servicing capacities, fiscal impact of debt servicing; and the fiscal and financial
management issues involved in debt management.
The National Institute of Public Finance and Policy (NIPFP) decided to undertake a pilot study of municipal debt financing in 12 municipal corporations of the country, namely: Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Bangalore, Lucknow, Jaipur, Bhopal, Ludhiana, Vadodra, and Trivandrum with a view to gain an initial understanding of the issues concerning the subject of municipal debt. The study was accordingly designed to probe into such basic questions as: what is the extent to which debt as an instrument is used for financing infrastructure? What is the use to which debts have been generally put? What are the sources of debts? What is the impact of such debts on the revenue budget of municipalities?
Municipal debt can be government loans, market loans (open market and loans from financial institutions), interest bearing internal loans and external
(World Bank) borrowing.
Municipal Debt Financing in India - NIPFP
management issues involved in debt management.
The National Institute of Public Finance and Policy (NIPFP) decided to undertake a pilot study of municipal debt financing in 12 municipal corporations of the country, namely: Mumbai, Calcutta, Delhi, Chennai, Hyderabad, Bangalore, Lucknow, Jaipur, Bhopal, Ludhiana, Vadodra, and Trivandrum with a view to gain an initial understanding of the issues concerning the subject of municipal debt. The study was accordingly designed to probe into such basic questions as: what is the extent to which debt as an instrument is used for financing infrastructure? What is the use to which debts have been generally put? What are the sources of debts? What is the impact of such debts on the revenue budget of municipalities?
Municipal debt can be government loans, market loans (open market and loans from financial institutions), interest bearing internal loans and external
(World Bank) borrowing.
Municipal Debt Financing in India - NIPFP