The work done by municipal corporations to combat the pandemic was at the cost of fiscal stress. Explain the strategies to overcome fiscal stress. (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· Municipal corporations that saw high numbers of Covid-19-affected were at the forefront of the fight against the pandemic, particularly during the lockdown.
· Municipal corporations were already facing decline in own-source income. (as noted by the Economic Survey 2018).
Strategies
· a fiscal stimulus needs to be announced as per intensity of stress, calibrated for the size of the city, to bridge the gap between declining revenue and increasing expenditure, giving priority to committed expenditure and Covid-related backlog.
· stimulus packages should also be made available to other Urban Local Bodies (ULBs) whose financial position is worse compared to corporations. They also have an equally important role in the event of third wave or other similar occasions.
· It includes GIS mapping of properties, cross checking, payments by government properties (including state governments), rationalisation of concessions, imposition of penalties (attachment of bank accounts of big defaulters) and revision of the unit area rate.
· bring in efficiency in expenditure using out-sourcing, PPP including hybrid annuity model (HAM), participatory budgeting by expanding the size of local elasticity from the citizens.
· Develop synergy within government missions and programmes, and use XV Finance Commission funds for common service centres (Rs 450 crore), health infrastructure (over Rs 25,000 crore), with a regional approach (44 urban agglomerations) for water and sanitation.
K. V. A 3 years
Kindly review
IAS Parliament 3 years
Good attempt. Keep Writing.
prem prince 3 years
kindly review
IAS Parliament 3 years
Try to stick to word limit. Keep Writing.
