Financial Autonomy for Financing Capital Expenditure of Local Body: A Case Study of Ulhasnagar Municipal Corporation, India

Abstract

Every municipal corporation must increase revenue and capital receipts.The surplus in budgets are important to finance capital expenditure. But the revenue receipts of Ulhasnagar Municipal Corporation have declined over the period of time. An interest receipts on taxes have declined sharply. The corporation is not able to spend more on various infrastructural facilities.Various expenditure such as expenditure on postage, street light, payment of staff has been reduced by corporation. The road maintenance, public notices, drainage repairing related expenditure also reduced by corporation over the period of time. The capital receipts have also declined of corporation. The development projects under JNNURM , MP funds various grants have declined very fast. Capital expenditure on slums, housing infrastructure, water supply has declined in corporation in current period. The municipal corporation must raise capital through issuing municipal bonds. It will help to raise capital for civic services investment in corporation. Such efforts can be very helpful to provide quality infrastructure facilities to people. People will able to increase standard of living and quality of life in corporation.