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URBAN LOCAL BODIES REFORMS

Manipur has become the 4th State in the country to successfully undertake “Urban Local Bodies (ULB)” reforms stipulated by the Department of Expenditure, Ministry of Finance in its letter to the States dated 17th May, 2020.
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About:

    Thus, the State has become eligible to mobilise additional financial resources of Rs.75 crore through Open Market Borrowings.

    Manipur has now joined the three other States namely, Andhra Pradesh, Madhya Pradesh and Telangana, who have completed this reform.

Benefits:

    Reforms in the Urban Local Bodies and the urban utilities reforms are aimed at financial strenghtening of ULBs in the States and to enable them to provide better public health and sanitation services.

    Economically rejuvenated ULBs will also be able to create good civic infrastructure.

Important Info :

The reforms stipulated by the Department of Expenditure to achieve these objectives are:

    The State will notify (a) floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions) and (b) floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/ past inflation.
    The State will put in place a system of periodic increase in floor rates of property tax/ user charges in line with price increases.

Source : LiveMint

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