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| Make urban local bodies self reliant |
| | May 18, 2004 | |
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The Idea |
Plan for urban development in cities with own finances through systemic measures in augmenting resources. The idea is to conserve Government resources for investments for the rural populace and the economically challenged sections in urban areas. |
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The Rationale |
Government needs to channel scarce resources to needy sectors - below poverty line, rural, education, health, etc. If major cities can stand on their own feet with no need for State Govt resources, the surplus can be diverted to more needy sectors. |
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An Approach |
 | Bangalore during 2000-04 is an example of the possibilities
| | The Bangalore Development Authority spent around Rs. 300 crores on infrastructure (fly overs, roads), eco restoration (Lakes, Lalbagh) from own funds (sale of sites, recovery of govt property). No govt burden
| | The Bangalore City Corporation reforms its property tax through Self Assessment - over Rs. 300 crores additional revenue over 4 years. Less burden for State grants
| | The Bangalore Metropolitan Road Transport Corporation is a profitable enterprise. Less need to get State funds
| | The Bangalore Police is empowered to retain its fine collections for traffic improvements (Over Rs. 20 crores in 4 years).
| | The above measures are indicative of how a city can be more self reliant. The State can contemplate a MoU with the urban local bodies that say over a 10 year time frame State grants will be progressively reduced. |
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Potential Partnerships |
Urban local bodies with the State Government |
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The Benefits |
| Urban local bodies are forced to think through creative solutions to raise own resources and deploy them for development activities
| | State can use its scare resources for the truly needy sections of society
| | The myth that rural or urban development can only happen at the expense of the other can be broken |
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