A Study on Evaluating Financing Alternatives for Urban Local Bodies in Karnataka Based on Financial Health and Risk Absorption Capacity

Abstract

The municipalities are the third tier of the Government after the Union Government and the State Government and they have been vested with additional responsibility under the 74^th Constitutional Amendment which includes water & sanitation, roads & bridges, sanitation, slum development, burial grounds , urban planning among many others. The study aims to develop a framework to suggest a suitable source of financing for the ULBs for which 11 Municipal Corporations were studied by using both primary and secondary data.  Since the ULBs differ in their revenue structure, one size fits all will not be suitable and this study suggests the alternative framework based on the financial stabilty of the ULB.