{"id":223569,"date":"2023-01-23T20:39:35","date_gmt":"2023-01-23T15:09:35","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=223569"},"modified":"2023-02-20T18:45:49","modified_gmt":"2023-02-20T13:15:49","slug":"a-reminder-of-the-flaws-in-indias-urbanisation-policies","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/a-reminder-of-the-flaws-in-indias-urbanisation-policies\/","title":{"rendered":"A reminder of the flaws in India\u2019s urbanisation policies"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cA reminder of the flaws in India\u2019s urbanisation policies\u201d <\/strong>published in The Hindu <\/strong>on 23rd January 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS2- Urbanisation, their problems and their remedies<\/p>\n

Relevance<\/strong>– Issues related to urban finance and urban governance<\/p>\n

News<\/strong>– The article explains the scenario of urban finance in India. It provides solutions to problem faced by urban governance in India<\/p>\n

What is the scenario of urban finance in India?<\/strong><\/h2>\n

Urban finance<\/strong> predominantly comes from the government. 48%, 24% and 15% of urban capital expenditure needs are derived from the central, State, and city governments, respectively. Public\u2013private partnership projects<\/strong> contribute 3% and commercial debt 2%.<\/p>\n

Various reports have estimated a huge demand for funding urban infrastructure. The Isher Judge Ahluwalia report <\/strong>says that by 2030, nearly \u20b939.2 lakh crore would be required. A McKinsey report on urbanisation<\/strong> has a figure of $1.2 trillion, or \u20b990 lakh crore.<\/p>\n

What are some points contained in the World Bank report on urbanisation in India?<\/strong><\/h2>\n

It estimates that nearly \u20b970 lakh crore would be needed for investment in urban India to meet the growing demands of the population.<\/p>\n

It suggests improving the fiscal base and creditworthiness<\/strong> of the Indian cities. Cities must institute a buoyant revenue base<\/strong>. They must be able to recover the cost of providing its services.<\/p>\n

This report points out that nearly 85% of government revenue is from the cities.<\/p>\n

Its emphasis is on the levying of more burdens in the form of user charges on utilities, etc.<\/p>\n

It focuses on private investments<\/strong><\/p>\n

State-level management of urban water and sewerage functions<\/strong> may be devolved in a time-bound manner.<\/p>\n

An improved urban legal framework<\/strong> that includes a stable and certain fiscal transfer regime, accords financial powers <\/strong>to ULBs will determine the future of cities.<\/p>\n

What are issues with urbanisation in India?<\/strong><\/h2>\n

The basic problem with the reports on urbanisation in India is that they are made using a top to bottom approach<\/strong>. They have too much of a focus on technocentric solutions using very high capital-intensive technologies<\/strong>.<\/p>\n

Cities primarily are run by parastatals<\/strong>.The city governments hardly have any role to play in the smooth functioning of such parastatals.<\/p>\n

What is the way forward for improving the situation of the Indian urban ecosystem?<\/strong><\/h2>\n

Plans must be made from below <\/strong>by engaging with the people and identifying their needs.<\/p>\n

Empowering<\/strong> the city governments and the people at large is the need of the day.<\/p>\n

The national task force to review the 74th Constitutional Amendment by K.C. Sivaramakrishnan <\/strong>provides many suggestions. It asks for empowering the people, transferring subjects to the city governments.<\/p>\n

It suggests that 10% of the income-tax collected from cities be given back to them and ensuring that this corpus fund<\/strong> was utilised only for infrastructure building.<\/p>\n

There is a need to improve urban governance. Regular elections should be held in cities and there must be empowerment through the transferring of the three Fs: finances, functions, and functionaries<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cA reminder of the flaws in India\u2019s urbanisation policies\u201d published in The Hindu on 23rd January 2023. Syllabus: GS2- Urbanisation, their problems and their remedies Relevance– Issues related to urban finance and urban governance News– The article explains the scenario of urban finance in India. It provides… Continue reading A reminder of the flaws in India\u2019s urbanisation policies<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,10498],"class_list":["post-223569","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/223569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=223569"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/223569\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=223569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=223569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=223569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}