MINISTER OF STATE (INDEPENDENT CHARGE) IN THE MINISTRY OF URBAN
DEVELOPMENT AND POVERTY ALLEVIATION( SHRI BANDARU DATTATRAYA )
(a): Yes Sir, the Municipal Corporation of Hyderabad and the
Visakhapatnam Municipal Corporation have been awarded by the
CRISIL in September, 2003 for their initiatives in Accounting
Reforms and in E-Governance, respectively. The Hyderabad
Municipal Corporation was also rated as AA+(SO) for the year
2001-02 by the CRISIL, based on which they could float tax-free
municipal bonds for Rs.82.50 crores during that year.
(b): The main features of administration of these municipal
bodies are:
- Increase in revenue income year by year;
- Increase in capital expenditure year after year;
- Decrease in Salary Ratio year after year;
- Increase in property tax collections without hiking the
rate of property tax.
- Computerization of all property tax assessments;
- Self-sufficiency in finance;
- Strengthening internal efficiency;
- Maintenance of accounts in accrual based double entry
financial accounting system under fully computerized
environment for transparency and accuracy;
- Streamlining of processes to reduce response time for the
provision of services;
- Privatisation of sanitation up to 80% ;
- Adoption of Unit Rate system in execution of civil works;
and
- In-house development of software and integration of
modules, which allow for sustainability and continuous
improvement of their initiatives.
(c)&(d): To make the urban local bodies more responsive and
accountable to the people and also to develop cities with a
standard of services as well as enhance their capability to
undertake the task of raising resources, the Ministry of Urban
Development & Poverty Alleviation has recently circulated a
Model Municipal Law to all State Governments for necessary
action. The Model Municipal Law seeks to define the role of
municipal bodies in delivery of municipal services, adoption of
double entry accounting system, levy of user charges,
involvement of private sector in delivery of municipal services,
property tax reforms, etc. Besides, this Ministry has also
prepared and circulated Urban Development Plans Formulation and
Implementation Guidelines, 1996; Guidelines on Property Tax
Reforms, 1998; and draft Guidelines on Public Private
Partnerships, to the States to help urban local bodies to play
their role more effectively and ensure better service delivery.
This Ministry has also been conducting various
conferences/workshops with the representatives of the States
from time to time to impress upon them to make the urban local
bodies as viable unit of self governance by giving them needed
functional and financial powers.