Fiscal Health of Selected Indian Cities

This paper provides an overview of the fiscal problems faced by five urban agglomerations in India, namely, Delhi, Hyderabad, Kolkata, Chennai, and Pune. It analyzes the fiscal health of the five urban agglomerations, quantifies their revenue capac...

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Main Authors: Bandyopadhyay, Simanti, Rao, M. Govinda
Format: Policy Research Working Paper
Language:English
Published: 2012
Subjects:
TAX
Online Access:http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090310132455
http://hdl.handle.net/10986/4059
id okr-10986-4059
recordtype oai_dc
spelling okr-10986-40592021-04-23T14:02:15Z Fiscal Health of Selected Indian Cities Bandyopadhyay, Simanti Rao, M. Govinda ACCOUNTABILITY ACCOUNTING ACCOUNTING SYSTEMS BORROWING CAPITAL EXPENDITURES CAPITAL MARKET CITY SIZE DEVELOPING COUNTRIES DEVELOPMENT FINANCE ECONOMIC ANALYSIS ELECTRICITY EQUALIZATION EXPENDITURE EXPENDITURE RESPONSIBILITIES EXPENDITURES FINANCES FINANCIAL INSTITUTIONS FISCAL CAPACITIES FISCAL CAPACITY FISCAL DECENTRALIZATION FISCAL GAPS FISCAL MANAGEMENT FISCAL POLICY FISCAL PROBLEMS FISCAL RESPONSIBILITY GOVERNANCE ISSUES GOVERNMENT REVENUE HOUSING INCOME INFRASTRUCTURE DEVELOPMENT INSTITUTIONAL ARRANGEMENTS INSTRUMENT INTERGOVERNMENTAL TRANSFER INTERGOVERNMENTAL TRANSFERS INTERNATIONAL BANK INVESTMENT REQUIREMENT INVESTMENT REQUIREMENTS LAWS LEGISLATION LEVY LICENSES LOCAL GOVERNMENT LOCAL GOVERNMENT REVENUE LOCAL GOVERNMENTS LOCAL LEVEL LOCAL TAXES MATURITY MUNICIPAL MUNICIPAL CORPORATIONS MUNICIPAL FINANCE MUNICIPAL GOVERNMENT MUNICIPAL GOVERNMENTS MUNICIPAL SERVICES MUNICIPALITIES MUNICIPALITY OCTROI PENSIONS POVERTY REDUCTION PROPERTY TAX COLLECTION PROPERTY TAXES PUBLIC PUBLIC FINANCE PUBLIC SERVICE PUBLIC SERVICE DELIVERY PUBLIC SERVICE PROVISION PUBLIC SERVICES PUBLIC TRANSPORTATION PUBLIC WORKS PUBLIC WORKS DEPARTMENT RATE OF MIGRATION RENT CONTROL RESERVE RESERVE BANK RESERVE BANK OF INDIA REVENUE EXPENDITURES REVENUE SOURCES ROADS SETTLEMENTS SOLID WASTE MANAGEMENT STAMP DUTY STATE GOVERNMENT STATE GOVERNMENTS STREET LIGHTING STRUCTURAL REFORMS SUBNATIONAL GOVERNMENTS TAX TAX COLLECTIONS TAX POLICY TAX RATE TAX RATES TAX REGIMES TAX REVENUE TAX REVENUES TAX SHARING TAX SYSTEM TRANSACTION TRANSACTION COST TRANSPARENCY UNFUNDED MANDATES URBAN AREAS URBAN ECONOMICS URBAN INFRASTRUCTURE URBAN SERVICES URBAN SEWERAGE URBAN TRANSPORTATION URBANIZATION USER CHARGES VALUATION WATER SUPPLY This paper provides an overview of the fiscal problems faced by five urban agglomerations in India, namely, Delhi, Hyderabad, Kolkata, Chennai, and Pune. It analyzes the fiscal health of the five urban agglomerations, quantifies their revenue capacities and expenditure needs, and draws policy recommendations on the means to reduce the gaps between revenue raising capacities and expenditure needs. The main findings suggest that, except for five small urban local bodies in Hyderabad, the others are not in a position to cover their expenditure needs by their present revenue collections. All the urban agglomerations have unutilized potential for revenue generation; however, with the exception of Hyderabad, they would fail to cover their expenditure needs even if they realized their revenue potential. Except in Chennai, larger corporations are more constrained than smaller urban local bodies. The paper recommends better utilization of "own revenue" through improved administration of property taxes, implementation of other taxes, and collection of user charges. It recommends that state governments should explore the option of allowing local bodies to piggyback a small proportion on their value-added tax collections. Another way to reduce the fiscal gap would be to earmark a portion of the sales proceeds from land and housing by state governments sold through their development agencies for improvements in urban infrastructure. The paper also recommends that the State Finance Commissions should develop appropriate norms for estimating expenditure needs, based on which transfers from the state to local governments can be decided. 2012-03-19T19:09:14Z 2012-03-19T19:09:14Z 2009-01-03 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090310132455 http://hdl.handle.net/10986/4059 English Policy Research working paper ; no. WPS 4863 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper South Asia South Asia South Asia Asia India
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ACCOUNTABILITY
ACCOUNTING
ACCOUNTING SYSTEMS
BORROWING
CAPITAL EXPENDITURES
CAPITAL MARKET
CITY SIZE
DEVELOPING COUNTRIES
DEVELOPMENT FINANCE
ECONOMIC ANALYSIS
ELECTRICITY
EQUALIZATION
EXPENDITURE
EXPENDITURE RESPONSIBILITIES
EXPENDITURES
FINANCES
FINANCIAL INSTITUTIONS
FISCAL CAPACITIES
FISCAL CAPACITY
FISCAL DECENTRALIZATION
FISCAL GAPS
FISCAL MANAGEMENT
FISCAL POLICY
FISCAL PROBLEMS
FISCAL RESPONSIBILITY
GOVERNANCE ISSUES
GOVERNMENT REVENUE
HOUSING
INCOME
INFRASTRUCTURE DEVELOPMENT
INSTITUTIONAL ARRANGEMENTS
INSTRUMENT
INTERGOVERNMENTAL TRANSFER
INTERGOVERNMENTAL TRANSFERS
INTERNATIONAL BANK
INVESTMENT REQUIREMENT
INVESTMENT REQUIREMENTS
LAWS
LEGISLATION
LEVY
LICENSES
LOCAL GOVERNMENT
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENTS
LOCAL LEVEL
LOCAL TAXES
MATURITY
MUNICIPAL
MUNICIPAL CORPORATIONS
MUNICIPAL FINANCE
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL SERVICES
MUNICIPALITIES
MUNICIPALITY
OCTROI
PENSIONS
POVERTY REDUCTION
PROPERTY TAX COLLECTION
PROPERTY TAXES
PUBLIC
PUBLIC FINANCE
PUBLIC SERVICE
PUBLIC SERVICE DELIVERY
PUBLIC SERVICE PROVISION
PUBLIC SERVICES
PUBLIC TRANSPORTATION
PUBLIC WORKS
PUBLIC WORKS DEPARTMENT
RATE OF MIGRATION
RENT CONTROL
RESERVE
RESERVE BANK
RESERVE BANK OF INDIA
REVENUE EXPENDITURES
REVENUE SOURCES
ROADS
SETTLEMENTS
SOLID WASTE MANAGEMENT
STAMP DUTY
STATE GOVERNMENT
STATE GOVERNMENTS
STREET LIGHTING
STRUCTURAL REFORMS
SUBNATIONAL GOVERNMENTS
TAX
TAX COLLECTIONS
TAX POLICY
TAX RATE
TAX RATES
TAX REGIMES
TAX REVENUE
TAX REVENUES
TAX SHARING
TAX SYSTEM
TRANSACTION
TRANSACTION COST
TRANSPARENCY
UNFUNDED MANDATES
URBAN AREAS
URBAN ECONOMICS
URBAN INFRASTRUCTURE
URBAN SERVICES
URBAN SEWERAGE
URBAN TRANSPORTATION
URBANIZATION
USER CHARGES
VALUATION
WATER SUPPLY
spellingShingle ACCOUNTABILITY
ACCOUNTING
ACCOUNTING SYSTEMS
BORROWING
CAPITAL EXPENDITURES
CAPITAL MARKET
CITY SIZE
DEVELOPING COUNTRIES
DEVELOPMENT FINANCE
ECONOMIC ANALYSIS
ELECTRICITY
EQUALIZATION
EXPENDITURE
EXPENDITURE RESPONSIBILITIES
EXPENDITURES
FINANCES
FINANCIAL INSTITUTIONS
FISCAL CAPACITIES
FISCAL CAPACITY
FISCAL DECENTRALIZATION
FISCAL GAPS
FISCAL MANAGEMENT
FISCAL POLICY
FISCAL PROBLEMS
FISCAL RESPONSIBILITY
GOVERNANCE ISSUES
GOVERNMENT REVENUE
HOUSING
INCOME
INFRASTRUCTURE DEVELOPMENT
INSTITUTIONAL ARRANGEMENTS
INSTRUMENT
INTERGOVERNMENTAL TRANSFER
INTERGOVERNMENTAL TRANSFERS
INTERNATIONAL BANK
INVESTMENT REQUIREMENT
INVESTMENT REQUIREMENTS
LAWS
LEGISLATION
LEVY
LICENSES
LOCAL GOVERNMENT
LOCAL GOVERNMENT REVENUE
LOCAL GOVERNMENTS
LOCAL LEVEL
LOCAL TAXES
MATURITY
MUNICIPAL
MUNICIPAL CORPORATIONS
MUNICIPAL FINANCE
MUNICIPAL GOVERNMENT
MUNICIPAL GOVERNMENTS
MUNICIPAL SERVICES
MUNICIPALITIES
MUNICIPALITY
OCTROI
PENSIONS
POVERTY REDUCTION
PROPERTY TAX COLLECTION
PROPERTY TAXES
PUBLIC
PUBLIC FINANCE
PUBLIC SERVICE
PUBLIC SERVICE DELIVERY
PUBLIC SERVICE PROVISION
PUBLIC SERVICES
PUBLIC TRANSPORTATION
PUBLIC WORKS
PUBLIC WORKS DEPARTMENT
RATE OF MIGRATION
RENT CONTROL
RESERVE
RESERVE BANK
RESERVE BANK OF INDIA
REVENUE EXPENDITURES
REVENUE SOURCES
ROADS
SETTLEMENTS
SOLID WASTE MANAGEMENT
STAMP DUTY
STATE GOVERNMENT
STATE GOVERNMENTS
STREET LIGHTING
STRUCTURAL REFORMS
SUBNATIONAL GOVERNMENTS
TAX
TAX COLLECTIONS
TAX POLICY
TAX RATE
TAX RATES
TAX REGIMES
TAX REVENUE
TAX REVENUES
TAX SHARING
TAX SYSTEM
TRANSACTION
TRANSACTION COST
TRANSPARENCY
UNFUNDED MANDATES
URBAN AREAS
URBAN ECONOMICS
URBAN INFRASTRUCTURE
URBAN SERVICES
URBAN SEWERAGE
URBAN TRANSPORTATION
URBANIZATION
USER CHARGES
VALUATION
WATER SUPPLY
Bandyopadhyay, Simanti
Rao, M. Govinda
Fiscal Health of Selected Indian Cities
geographic_facet South Asia
South Asia
South Asia
Asia
India
relation Policy Research working paper ; no. WPS 4863
description This paper provides an overview of the fiscal problems faced by five urban agglomerations in India, namely, Delhi, Hyderabad, Kolkata, Chennai, and Pune. It analyzes the fiscal health of the five urban agglomerations, quantifies their revenue capacities and expenditure needs, and draws policy recommendations on the means to reduce the gaps between revenue raising capacities and expenditure needs. The main findings suggest that, except for five small urban local bodies in Hyderabad, the others are not in a position to cover their expenditure needs by their present revenue collections. All the urban agglomerations have unutilized potential for revenue generation; however, with the exception of Hyderabad, they would fail to cover their expenditure needs even if they realized their revenue potential. Except in Chennai, larger corporations are more constrained than smaller urban local bodies. The paper recommends better utilization of "own revenue" through improved administration of property taxes, implementation of other taxes, and collection of user charges. It recommends that state governments should explore the option of allowing local bodies to piggyback a small proportion on their value-added tax collections. Another way to reduce the fiscal gap would be to earmark a portion of the sales proceeds from land and housing by state governments sold through their development agencies for improvements in urban infrastructure. The paper also recommends that the State Finance Commissions should develop appropriate norms for estimating expenditure needs, based on which transfers from the state to local governments can be decided.
format Publications & Research :: Policy Research Working Paper
author Bandyopadhyay, Simanti
Rao, M. Govinda
author_facet Bandyopadhyay, Simanti
Rao, M. Govinda
author_sort Bandyopadhyay, Simanti
title Fiscal Health of Selected Indian Cities
title_short Fiscal Health of Selected Indian Cities
title_full Fiscal Health of Selected Indian Cities
title_fullStr Fiscal Health of Selected Indian Cities
title_full_unstemmed Fiscal Health of Selected Indian Cities
title_sort fiscal health of selected indian cities
publishDate 2012
url http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20090310132455
http://hdl.handle.net/10986/4059
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