Strengthening Municipal Property Tax
December 2024
Strengthening municipal finance has been on the government agenda for a long time. The union budget speech for FY 2023-24 mentioned incentivizing municipal governments through mobilizing own resources through property taxes and user charges for urban infrastructure and enhancing creditworthiness for municipal bonds. This paper focuses on the potential of property tax for Indian cities and the measures needed to realise additional revenue. For this to happen, the national and state governments will need to ‘empower’ the Urban Local Bodies (ULBs), especially the small and medium sized ULBs.
