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A deep dive into the finances of municipal corporations in India

By: Gupta, Manish Gupta, Aakash and Gupta, Neeti.
Material type: materialTypeLabelBookPublisher: Economic & Political Weekly Description: 60(39), Sep 27, 2025: p.40-47. In: Economic & Political WeeklySummary: The finances of 166 municipal corporations across 22 states for 2019–20 to 2021–22 are analysed. While data availability has improved, comparability issues remain. Indicators examined include own revenue, dependence on intergovernmental transfers, coverage of expenditure from own revenues, and capital receipts. MCs are heterogeneous: smaller MCs rely heavily on transfers, whereas larger MCs primarily depend on own revenues. On average, own revenues finance 51%–56% of revenue expenditure, with property tax as the main levy. High transfer dependence discourages local revenue mobilisation, underscoring the need for policy frameworks to strengthen MCs and build vibrant urban growth centres. – Reproduced https://www.epw.in/journal/2025/39/special-articles/deep-dive-finances-municipal-corporations-india.html
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Articles Articles Indian Institute of Public Administration
60(39), Sep 27, 2025: p.40-47 Available AR137548

The finances of 166 municipal corporations across 22 states for 2019–20 to 2021–22 are analysed. While data availability has improved, comparability issues remain. Indicators examined include own revenue, dependence on intergovernmental transfers, coverage of expenditure from own revenues, and capital receipts. MCs are heterogeneous: smaller MCs rely heavily on transfers, whereas larger MCs primarily depend on own revenues. On average, own revenues finance 51%–56% of revenue expenditure, with property tax as the main levy. High transfer dependence discourages local revenue mobilisation, underscoring the need for policy frameworks to strengthen MCs and build vibrant urban growth centres. – Reproduced

https://www.epw.in/journal/2025/39/special-articles/deep-dive-finances-municipal-corporations-india.html

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