Financing of Urban Local Bodies in India

Posted: 2 Jul 2015

See all articles by Charan Singh

Charan Singh

Indian Institute of Management (IIMB), Bangalore

Chiranjiv Singh


Date Written: July 2, 2015


The rising level of urbanisation in India draws attention to inadequate infrastructure levels in urban areas. While many factors play a role in infrastructure development, this paper examines the financial requirements for such growth. The paper examines the broad fiscal position of urban local bodies in India and the arrangement under different five year plans and various Commissions – central and state. Considering India’s growth prospects on the horizon, and the ensuing financing requirements, this paper eventually makes some suggestions in an attempt to enhance the municipal bond financing market and contribute towards infrastructural development.

Keywords: Urban Local Bodies, Municipalities, Panchayats, Finances, Municipal Bonds

Suggested Citation

Singh, Charan and Singh, Chiranjiv, Financing of Urban Local Bodies in India (July 2, 2015). IIM Bangalore Research Paper No. 493, Available at SSRN: or

Charan Singh (Contact Author)

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
080-26993818 (Phone)

Chiranjiv Singh

Independent ( email )

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