Recognizing the pivotal role of urbanization as a driver of national economic growth, the Fifteenth Finance Commission has suggested major reforms for Urban Local Bodies. Evaluate the recommendations put forward by the Fifteenth Finance Commission in promoting and revitalizing ULBs in India.

Pivotal role of urbanisation as a driver of economic growth

→ ① Around 60% of GDP growth provided by urban centres. → ② Role in rapid industrial transformation of the country. (Dealing with "jobless growth") → ③ Dealing with loss of GDP in natural calamities in urban areas. eg) 4% of GDP lost in disasters.

• Recommendations of 15th FC
  • 1. Increasing revenue share from states & CFI.
  • 1. Broadening of local bond market. e.g.) Municipal bond of Indore
  • 1. Creating pool of resources for revenue e.g.) land pooling.
  • 1. use of taxing power by the ULBs themselves.

evaluation

• evaluation
  • -ve
    • 1. According to MPI, 20/111 ULBs face crisis economically.
  • +ve
    • 2. Increasing use of bonds by the ULBs.