Gujarat Chief Minister Bhupendra Patel urged elected officials of urban civic bodies to come up with ways to generate their own income, saying that the current paradigm of civic bodies relying on the state and central governments for funding is unsustainable.
Patel recently called a conference of elected officials from municipal corporations, municipalities, and urban development authority in Gandhinagar and said that the system of grants from the state government and the central government will be phased down over time.
Additionally, he asked that urban civic bodies develop ways to increase their earnings to pay for development projects.
Periodic tax hikes, efficient tax recovery, and the creation of additional sources of income are some of the recommendations made by the government to increase the revenues of urban civic bodies. Urban civic bodies have also been pressed to enhance their governance due to the loss of government performance grants.
A government official said, “Most urban civic bodies depend on government grants for their functioning. The CM categorically asked elected leaders of civic bodies to change this scenario. Although no timeframe has been set, the CM said the system of government providing funds to civic bodies will gradually be phased out as it is not a sustainable model.”
The Atal Mission for Rejuvenation and Urban Transformation (AMRUT), the underwater sewage system, the status of work in urban municipal bodies under the “Nal Se Jal” initiative, and other projects were also evaluated at the meeting. The meeting was attended by elected officials from A-grade municipalities and urban development bodies in addition to the eight municipal corporations.