Balancing The Books, Building The City

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Source: Unsplash

With city budgets rolling out, Jodhpur has taken a digital leap, while Muzaffarpur addresses stray dog management and Vijayawada focuses on sanitation. Yet, beneath these plans lies a larger question: how financially independent are our municipalities? As urban areas expand and expectations rise, are city budgets keeping pace with development demands, or are they still heavily reliant on state and central grants?

After the Union Government’s budget, many city governments are preparing their budgets.

Jodhpur MC South recently approved an annual budget of INR 697.64 crore with a voice vote.

The budget included city beautification activities for the G20 summit and implementation of digital initiatives by providing councillors and officials with iPads.

In India, budgeting is mandated by law for all local self-governments. Municipal budgets are generally prepared by city governments’ finance departments. The process begins with the preparation of an estimate of the city government’s income and expenditure for the next financial year by the city’s administrative head, like the Commissioner. Then a committee, for example the finance standing committee, reviews the estimates and drafts the municipal budget a few weeks before the financial year begins. The final version is submitted for approval in the house, or the council of all the elected representatives of the city and goes into effect after approval from state government.

Source: Times of India

The Amdavad Municipal Corporation (AMC) presented a budget of 8,111 crore for FY 2022-23.

Along with an estimate of revenue and expenditure, a city budget can also include provisions for specific schemes which the city has planned to undertake in the future along with its financial position. For instance, Muzaffarpur MC in Bihar has allocated INR 1 crore towards the sterilisation of stray dogs.

Meanwhile, Vijayawada MC is working towards improving the city’s sanitation and solid waste management, with the goal of enhancing its ranking in the Swachh Survekshan 2023. Furthermore, Indore has made a first move by issuing the nation’s first retail green bonds.

The issue of financing local governments has been a long-debated issue in the context of fiscal decentralisation, owing to the fact that the majority of ULBs rely heavily on grants from state and central governments to meet their expenditure requirements. Municipal budgets play a critical role in addressing the needs of the people, yet they are often overlooked and given little attention. It is imperative that these budgets receive greater attention and scrutiny, sensitising people to the influence of municipal budgets and their role in the same.Has your city released their municipal budget? Read more.