Urban Local Bodies (ULBs) Reform

Objective

Reforms in ULBs and the urban utilities reforms are aimed at

• Financial strengthening and economic rejuvenation of ULBs in the States
• Enabling them to provide better public health and sanitation services to citizens.
• Creating good civic infrastructure.

Reforms

The set of reforms stipulated by the Department of Expenditure are:

(i) The State will notify:

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

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

Fig: Citizen Centric Area for Reforms identified by Department of Expenditure