Abstract
Growth and prosperity of a country are, to a large extent, dependent on the economic activity that take place within the jurisdiction of cities. These activities in turn are dependent on the type of infrastructure and the environment that is provided by city governments. Indian cities have in the last two decades faced severe problems in maintaining and improving the levels of services they provide. Some of these problems have been the result of mismanagement of the fiscal resources at their command while others are the result of inadequate resource base. This paper presents a brief sketch of the fiscal problems of cities in relation to their assigned responsibilities and proposes a set of reform measures that would go a long way in improving their fiscal viability in the years to come.
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