Recently Goa has become the 6th State in India that have successfully completed the Urban Local Bodies (ULBs) reforms.

Points To Note

  • These ULBs reforms were set up by the Department of Expenditure.
  • Union Finance Ministry highlighted that Goa will now eligible to mobilise the additional financial resources of Rupees 223 crore with the help of Open Market Borrowings (OMBs).
  • Apart from Goa, 5 other states are Madhya Pradesh, Andhra Pradesh, Rajasthan, Telangana and Manipur have already completed the Urban Local Bodies reforms.
  • These 5 states have also been granted a total additional borrowing permission of 10 thousandRupees 10,435 crore .

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 Urban Local Bodies in accordance with the guideline rates for property transactions.
  2. States are also required to notify the floor rates of user charges with respect to the provision of water-supply, drainage and sewerage.
  3. They 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 government has also identified 4 citizen centric areas for reforms namely, the Implementation of One Nation One Ration Card (ONORC), Urban Local body or utility reform, Ease of doing business reform and Power Sector reforms.

Implications

After undertaking the reforms,

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

Aim of ULBs reforms

Reforms in ULBs 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 Urban Local Bodies to provide better public health and sanitation services to its citizens.

Goa 6th State to complete Ulbs reforms