Modest means: Time to strengthen and reimagine India's local bodies

To improve MC finances, interventions will be required at various levels. Most importantly, MCs will have to work on boosting their revenues

The Reserve Bank of India (RBI) has done well to initiate studies on the fiscal position of local bodies and publish the findings. The first such report on municipal corporation (MC) finances was published in November 2022. This was followed by a study of the finances of panchayati raj institutions. The RBI has now published a report on the fiscal position of MCs from 2019-20 to 2023-24 (Budget estimates, or BE). The study covers 232 MCs across the country. Local bodies in India often receive limited policy attention, partly due to the lack of data in a comparable format. It