Government Policies and Interventions for Development in Various Sectors and Issues Arising Out of Their Design and Implementation.

GS-2

4.URBAN LOCAL BODIES REFORMS

Rajasthan becomes the 5th State to complete Urban Local Bodies (ULB) reforms.

IMPORTANT POINTS:

  • Rajasthan has become the 5th state in the country to successfully undertake “Urban Local Bodies (ULB)” reform stipulated by the Department of Expenditure, Ministry of Finance.
  • Thus, the State has become eligible to mobilise additional financial resources of Rs 2731 crore through Open Market Borrowings.
  • Rajasthan has now joined four other states namely, Manipur, Telangana, Andhra Pradesh and Madhya Pradesh, that have completed this reform.
  • On completion of Urban Local Bodies reform, these five States have been granted additional borrowing permission of Rs 10212 crore.

Objectives/Need for reforms:

Reforms in the Urban Local Bodies and the urban utilities reforms are aimed at financial strengthening of ULBs in the states and to enable them to provide better public health and sanitation services. Economically rejuvenated ULBs will also be able to create good civic infrastructure.The reforms stipulated by the Department of Expenditure to achieve these objectives are:

The State will notify –

  • Floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions)
  • Floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/past inflation.
  • The state will put in place a system of periodic increase in floor rates of property tax/user charges in line with price increases.

SOURCE: PIB

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