Hyderabad: It is not just the state government, but even local bodies are now vying to issue bonds to raise funds from capital markets for taking up development works in municipalities and municipal corporations. The need to raise funds through bonds arose for local bodies after the state government imposed cuts in budgetary allocations due to fund crunch.
Local bodies are struggling to take up development works due to paucity of funds, as most funds accrued through various tax collections, user charges and grants from the state government and Finance Commission fail to meet even salaries and operational expenditure of local bodies. The long-pending problems of poor roads, drainage systems and flooding in urban areas could not be resolved due to fund crunch, causing severe hardships to people.
To overcome fund crunch for urban local bodies, minister for municipal administration and urban development K. T. Rama Rao is on a mission to raise funds from capital markets by…