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‘Manipur becomes 4th state to successfully undertake ULB reforms’

  • Category
    Governance
  • Published
    19th Jan, 2021

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.

Context

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.

About

What are ULB Reforms?

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

1. The State will notify

  • floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e. guideline rates for property transactions)
  • floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/ past inflation.

2. The State will put in place a system of periodic increase in floor rates of property tax/ user charges in line with price increases.

Citizen centric areas of reforms

  • The four citizen centric areas identified for reforms were
    • Implementation of One Nation One Ration Card System
    • Ease of doing business reform
    • Urban Local body/ utility reforms
    • Power Sector reforms

Progress so far (citizen centric areas)

So far:

  • 10 States have implemented the One Nation One Ration Card System
  • 7 States have done ease of doing business reforms
  • 4 States have done local body reforms

Total additional borrowing permission issued so far to the States who have done the refoms stands at Rs.­­­54,265 crore.

The other states

  • Manipur has now joined the three other States namely, Andhra Pradesh, Madhya Pradesh and Telangana, who have completed this reform. 
    • The state has become eligible to mobilise additional financial resources of 75 crore rupees through Open Market Borrowings.
  • On completion of Urban Local Bodies reform, these four States have been granted additional borrowing permission of Rs.7,481 crore. 
  • State wise amount of the additional borrowing permitted is as under:

State

Amount (Rs in crore)

Andhra Pradesh

2,525

Madhya Pradesh

2,373

Manipur

75

Telangana

2,508

X

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