Municipal Finance of West Bengal

Abstract

Abstract: Urban local bodies ( ULBs) are statutorily responsible to deal with urban problems. The primary rationale of ULBs is provisioning of civic amenities to residents in the area under their jurisdiction. Increased urbanization creates demand for more and more civic services which are provided by the ULBs under fiscal stress. The objective of the proposed work is to undertake a study of the financial structure of ULBs of West Bengal and understand its implications for provisioning of municipal facilities for the period 2001-02, 2007-08 and 2013-14. This will include the analysis of the pattern of disbursements and receipts of ULBs at the state and district levels. This is followed by analysis of the components of receipts and disbursements. It has been found from the analysis of municipal finance that ULBs of West Bengal are not being able to generate sufficient revenue. The dependence on grants reflects the inability of ULBs to generate sufficient own source income. The provisioning of municipal services are also not at a desired level. The burden of unproductive expenditure and poor quality of municipal services are also found. West Bengal has implemented more or less all the provisions of the 74th Constitution Amendment Act But effective functioning and efficient administration are needed for overall improvement in the governance of ULBs. Keywords: Municipality, Finance, Urban local bodies, Revenue, Expenditure JEL codes: H2, H7, H71,H72,H75, H76