Goa- 6th State to complete Urban Local Bodies reforms

February 12, 2021

Goa has become the 6th State in the country that have successfully completed the Urban Local Bodies reforms.

Highlights

  • These Urban Local Bodies reforms were set up by the Department of Expenditure.
  • Finance Ministry highlighted that the state of Goa will now eligible to mobilise the additional financial resources of 223 crore rupees with the help of Open Market Borrowings.
  • Apart from Goa, five other states namely Andhra Pradesh, Madhya Pradesh, Rajasthan, Manipur and Telangana have already completed the Urban Local Bodies reforms.
  • These five states have also been granted a total additional borrowing permission of ten thousand 435 crore rupees.

What are the reforms?

The Department of Expenditure have set following reforms:

  1. Under the reforms, the states are required to notify floor rates of property tax in ULBs in accordance with the guideline rates for property transactions.
  2. The states are also required to notify the floor rates of user charges with respect to the provision of water-supply, drainage and sewerage.
  3. State will also launch a system of periodic increase in the floor rates of property tax or the user charges with respect to the price increases.

Apart from these reforms, the centre has also identified four citizen centric areas for reforms namely, the Implementation of One Nation One Ration Card, Urban Local body or utility reform, Ease of doing business reform and Power Sector reforms.

What are the implications?

After undertaking the reforms,

  1. Goa has become eligible to get the additional reform linked borrowing.
  2. It will now be granted permission to mobilise financial resource of RS 2,731 by the Department of Expenditure.

What is the aim of Urban Local Bodies reforms?

Reforms in Urban Local Bodies and the urban utilities reforms are being undertaken with the aim of strengthening the finance of the Urban Local Bodies in States. These reforms would enable the ULBs to provide better public health and sanitation services to its citizens.

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