Options for Strengthening Municipal Finances

Options for Strengthening Municipal Finances

The extent and nature of intergovernmental transfers to our cities from the higher levels of governments have not been paid adequate attention in the RBI's Municipal Finances report (2022).  International experience from both developed and emerging economies suggests a much higher level of IGT to local governments. The transfers are especially critical in view of the goods and services tax regime,  which has left out any provision for the third tier of governments.