Indian Cities Go the Detroit Way, Most Municipal Bodies Cash Strapped

Rs 3,500 crore serves as the total budget of KMC, out of it, Rs 1,900 crore comes from government funding. The total expenditure incurred by the corporation is Rs 3,400 crore and as such there is not much development work. So, efforts are directed towards increasing revenues through enhanced property tax collection.

The municipal body in Kochi too shows a very miserable situation where they depend on property, advertisement, entertainment and professional taxes and grants from the central and state governments. In 2013-14, Rs 877.97 crore is expected to be generated as against an estimated expenditure of Rs 849.86 crore.

Kochi’s Mayor Tony Chammany said, "The Corporation is cash-strapped and depends on the state to execute big infrastructure projects. Bulk of its income goes in paying salaries and pensions," reported TOI.

Financial crisis, lack of governance and autonomy, groupism, political interference and overstaffing are some of the common problems faced by most of the municipal bodies in the country. The country is in desperate need to get this problem fixed as it would facilitate urbanization and help cities grow.

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