Financial mismanagement reason for bad city governance, says survey

The financial despondency of India's major cities could also be seen from the fact that 70% cities saw a variance of more than 30% in their annual budgets, leaving them vulnerable to externalities

Major Indian cities are in a dire need of a better financial management at the local body level, according to a report released by Janaagraha Centre for Citizenship and Democracy. The survey studied 23 Indian cities and found 54 per cent of the cities did not generate enough revenue to fund their salary costs. This forced them to ask for funds from central and state governments. 
 

In the survey, Pune came on top, followed by Kolkata and Thiruvananthapuram, while Bengaluru occupied the bottom spot.

Indicator-wise the study revealed most cities are neither financially well-off, nor adequately staffed at the urban body level. 
 

The financial despondency of India's major cities could also be seen from the fact that 70 per cent cities saw a variance of more than 30 per cent in their annual budgets, leaving them extremely vulnerable to externalities. 
 

The report also pointed out that since Indian cities don't pay their mayors and municipal staff enough, there's high attrition and governance is wobbly. 

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