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Permitted to mobilise additional financial resources of Rs.4,898 crore through open market borrowings Andhra Pradesh and Madhya Pradesh have taken the lead in undertaking the Urban Local Bodies (ULB) reforms. The two States have successfully completed the set of reforms in functioning of ULBs, as specified by the Department of Expenditure, Ministry of Finance. To motivate the States to undertake reforms in various citizen centric sectors, the Ministry of Finance has linked a part of additiona
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FAQ :
Andhra Pradesh and Madhya Pradesh have been permitted to mobilise an additional Rs.4,898 crore through open market borrowings.
They have been permitted to borrow more because they successfully completed reforms in their Urban Local Bodies (ULBs), which is a requirement set by the Ministry of Finance.
The reforms aim to financially strengthen Urban Local Bodies, enabling them to provide better public health and sanitation services, and create good civic infrastructure.
Andhra Pradesh has received permission to borrow Rs.2,525 crore, and Madhya Pradesh has been permitted to mobilise an additional Rs.2,373 crore.
The reforms required states to notify property tax floor rates in line with circle rates and user charges for water-supply, drainage, and sewerage that reflect current costs, and to put in place a system for periodic increases in these rates.
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