PRIA@40

This was a study undertaken to enhance knowledge of existing revenue sources and expenditure patterns of urban local bodies.

Objectives

Enhancing knowledge of existing revenue sources and expenditure patterns of urban local bodies.
Exploring opportunities and potential to enhance revenue sources.
Suggesting better fiscal management of urban local bodies.
Exploring the extent to which citizens participate in fiscal processes (priority setting during budget preparation, resource generation/augmentation and monitoring fiscal performance).

Geographical spread

Seven states – Rajasthan, Gujarat, Haryana, Himachal Pradesh, Madhya Pradesh, Chhattisgarh and Bihar – with about 5 case studies of small and medium towns in each state.

Key areas/components

Collection of municipal finance data (mostly from municipal budget documents, and from financial records kept by the municipal officers or the state government directorates of urban development) for 5 most recent years of the urban local body.
Interviews with municipal functionaries and other citizens on financial priorities of the urban local body, their opinion on level of service provision and the extent of people's participation in the budgeting process.

Key outputs

The analysis was carried out by both functional and financial heads. Analytical reports produced at three levels:
- Detailed city-level reports for the towns covered as case studies
- Consolidated reports at the state level
- Integrated national report
Analysis of data giving the following details:
- Extent of urbanization
- State Finance Commission fiscal scenario, dependence on revenue grants, tax and non-tax incomes, capital account, extraordinary account, functional analysis
- Accounting systems and budget documents
- Corruption
- Control of the state government
- Relationship between elected wing and executive wing
- Citizen participation
- Urban governance
Emerging issues and recommendations

Year/period

2006-2008

Client