Letter to BS: Bonds issued by civic institutions carry onus of public trust

This refers to “Munis: Smart bonds for smart cities” (December 5). Bonds issued by civic institutions carry the onus of public trust. In mid-2017, the Pune Municipal Corporation (PMC) raised Rs 2 billion via a bond issue. Many saw this as a test case for the revival of municipal bonds in India. In July 2018, Indore followed suit. Bonds are subject to investment ratings by independent agencies; the coupon rates go up as ratings dip to raise the debt burden that makes its servicing tough. Most cities consume more than half of the revenue in salaries. With a pension scheme,