Budget Initiative to Boost ULB Finances

Hyderabad: Financing of urban local bodies (ULBs) and urban development authorities is expected to improve with the Center proposing in the Union Budget that cities raising municipal bonds worth Rs 1,000 Million will get an incentive of Rs 100 Million, helping to finance major projects faster.

Smaller towns will continue to receive bond support of up to Rs.200 crore through the Atal Mission for Rejuvenation and Urban Transformation (Amrut), allowing them to improve local roads, parks, water supply and other basic services.

“Increasing bonds will be a priority after the municipal elections. Municipal commissioners (MCs) will prepare plans for proposed works. Funds collected through bonds will be used only for infrastructure development,” said an official from the municipal administration and urban development (MA&UD) department.

“We will also reach out to financial experts and organizations like CRISIL, ICRA and CARE to meet the criteria and ensure our ULBs get AAA and AA ratings and have high creditworthiness,” he added.

Proposing to raise Rs 2.144 billion, HMDA has decided to mobilize another Rs 2,000 Million in the next five months.

Earlier, there were cases in ULBs on the outskirts of the city where even changing street lights was difficult due to Budget constraints and it took days to clear the sewer overflow. These things may change if offers come in.