


With a substantial section of the population moving to cities in quest of better opportunities and higher living standards, urbanisation is drastically changing the landscape of India. Local governments in India face both opportunities and challenges as a result of this rapid urbanisation. Municipalities are crucial for providing basic services, building infrastructure, and promoting social and economic advancement at the local level. The ability of local governments to raise the necessary funds to meet the changing needs of the people and society in general becomes increasingly important as urbanisation accelerates.
This paper aims to address the issues and challenges of municipal finance while emphasising the importance of fiscal autonomy for the local government. It will explore the need for innovative revenue generation strategies to meet the rising demands of urbanisation and provide basic services and infrastructure.
We have refrained from examining property tax, professional tax, etc., due to the extensive and well-established literature on those subjects. In reiterating the imperative to enhance existing tax collection methods, this paper focuses on exploring new avenues for tax collection.
Dr D Dhanuraj is the Founder-Chairman, Nissy Solomon is an Hon. Trustee (Research & Programs) at Centre for Public Policy Research (CPPR), Kochi, India.
Views expressed by the authors are personal and need not reflect or represent the views of the Centre for Public Policy Research.
Dr Dhanuraj is the Chairman of CPPR. His core areas of expertise are in international relations, urbanisation, urban transport & infrastructure, education, health, livelihood, law, and election analysis. He can be contacted by email at [email protected] or on Twitter @dhanuraj.
Nissy Solomon is Hon. Trustee (Research & Programs) at CPPR. She has a background in Economics with a master’s degree in Public Policy from the National Law School of India University, Bangalore. After graduation and prior to her venture into the public policy domain, she worked as a Geographic Information Systems (GIS) Analyst with Nokia-Heremaps. Her postgraduate research explored the interface of GIS in Indian healthcare planning. She is broadly interested in Public Policy, Economic Development and Spatial Analysis for policymaking.