ACCOUNTING
| Panel suggests 15 pc increase in urban development funding Mon, 07 Mar 2011 22:17:27 GMT |
| New Delhi: The government needs to scale up urban development funding by at least 15% per annum in the 12th Plan (2011-17) to meet the challenges of rapid urbanisation in the country, an expert committee has said. Citing the need for an investment of 32.4 lakh crore over a period of 20 years, the committee has suggested that the government needs to increase spending and revamp existing schemes to enhance urbanisation. The expert committee, headed by economist Isher Ahluwalia , submitted its report to urban development minister Kamal Nath and housing and poverty alleviation minister Selja Kumari. "There is a requirement for capacity building and institutional building to sustain growth in urban sector. We will study the report and take steps to operationalise it," said Nath after receiving the report. Noting that the progress under the government's flagship urban development scheme, Jawaharlal Lal Nehru Urban Renewal Mission (JNNURM), has been slow, the committee has suggested revamping the scheme with a primary focus on capacity creation at the local government level. JNNURM was launched in December 2005 for a period of seven years and Nath asserted the need to continue the scheme beyond the 11th Plan,, which will end in 2011. The report further suggested the government to extend financial support and provide autonomy to urban local bodies (ULBs) to improve their revenue situation. "ULBs in India are among the weakest in the world, both in terms of capacity to raise resources and financial autonomy. The tax base of ULBs are narrow and inflexible," the report said. The committee has delved into seven sectors and has given recommendations regarding improvement of water supply, sewerage, solid waste management, storm water drains, urban roads, urban transport, street lighting and traffic support infrastructure. |
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