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Hiking to help citizen groups to make municipal bonds more attractive

Mumbai: Top local governments in the country could increase budget funding as government prepares to empower citizen groups that play an important role in strengthening the quality of life in rapidly urbanizing India There is.

15th day Finance Committee We recommend up to 20,000 rupees Fund allocation In a report next Monday, two sources familiar with the matter told ET over the next five years to local governments across the country. “In addition to other cities, cities are likely to have major provisions, both in terms of funding and reform measures,” said one source.

This should significantly improve the financial position of these municipalities, many of which are aimed at raising bonds. The Times of India reported on January 25 that Brihan Mumbai Municipal Corporation, Asia’s wealthiest citizen group, plans to raise up to Rs 400 billion.

The 14th Finance Commission has allocated 87,000 chlores for the period 16-20. There was an interim report for FY2009 announced in the previous budget.

Email inquiries sent to the Bureau of Economic Affairs remained unanswered.

“Financial sustainability and financial accountability of urban municipalities are important for transforming urban infrastructure in India,” said Srikanth Viswanathan, CEO of Bangalore-based NGO Janaagraha. We are working on citizen participation in the city. “If a city’s municipality receives a predictable and untied financial transfer in the form of a Finance Commission grant, their financial position will improve. Private investors will invest in municipal debt, including bonds. You will start to gain confidence in doing it. ”

The coronavirus has worsened the financial condition of local governments. Resources are further weakened as states are claimed to be reluctant to pursue collections.

Funding allocations may be released to certain categories of cities, especially to undertake improvements in key social infrastructure such as air quality, drinking water and solid waste management.

There are about 3,700 municipalities in the country. The government has encouraged them to raise money in the capital markets.However, for individual investors Local bonds.. “A surge in funding helps build investor confidence. Local bonds“A local investment banker said.

Hiking to help citizen groups to make municipal bonds more attractive Hiking to help citizen groups to make municipal bonds more attractive

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