QUES . “The financial suitability of the Urban local bodies can become a reality only when they receive their due share of public finances.” Explain.
HINTS:
Urban local bodies (ULBs) are responsible for providing essential services such as water supply, sanitation, waste management, health, education, and other infrastructure facilities to the residents of urban areas. These services require a significant amount of funding, which is often not sufficient from their own sources of revenue. Therefore, the ULBs heavily depend on the central and state government grants to meet their expenses.
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The financial viability of the ULBs is essential for their effective functioning and service delivery. However, many ULBs in India struggle with financial sustainability due to the inadequate allocation of public finances. The ULBs often receive insufficient grants from the central and state governments, which limits their ability to provide basic services and invest in critical infrastructure.
When ULBs receive their due share of public finances, it can significantly improve their financial suitability. Adequate funding would allow ULBs to invest in infrastructure, equipment, and technology that would enable them to provide efficient and effective services to the residents. Furthermore, it would also enable them to meet their operating and maintenance expenses, which are essential for the sustainability of their services.
The lack of public finances can also lead to ULBs relying on other sources of funding, such as borrowing from financial institutions or raising funds through user charges. However, this can lead to a cycle of debt and may make it difficult for the ULBs to provide services to the poorest sections of society.
In conclusion, the financial suitability of ULBs is essential for the provision of essential services to urban residents. To achieve this, ULBs need to receive their due share of public finances. Adequate funding would enable them to invest in infrastructure, equipment, and technology, meet their operating expenses, and provide efficient and effective services to the residents.
External link: https://cag.gov.in/uploads/download_audit_report/2008/Uttar_Pradesh_TL_ULB_2008_Chap_1.pdf
