{"id":33521,"date":"2022-12-28T04:57:53","date_gmt":"2022-12-27T23:27:53","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=33521"},"modified":"2025-04-19T23:07:53","modified_gmt":"2025-04-19T17:37:53","slug":"city-finance-rankings-2022-2","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/city-finance-rankings-2022-2\/","title":{"rendered":"City Finance Rankings 2022"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>Issues that have impacted development goals of several cities\u00a0<\/strong><\/li>\n<li><strong>About the City Finance Rankings 2022<\/strong><\/li>\n<li><strong>About the \u2018City Beauty Competition\u2019<\/strong><\/li>\n<li><strong>Other initiatives for urban development in India.<\/strong><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>Recently, the Union Ministry of Housing and Urban Affairs (MoHUA) launched guidelines for a new finance-based ranking of cities &#8211; <strong>City Finance Rankings 2022<\/strong>, which would evaluate urban units on 15 key parameters.<\/li>\n<li>The Ministry also launched a separate ranking &#8211; \u2018<strong>City Beauty Competition<\/strong>\u2019, to evaluate cities on beautification.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What are the issues impacting the development goals of cities?<\/strong><\/h2>\n<ul>\n<li><strong>Meagre revenue from municipal bodies own sources<\/strong> such as property tax and user charges.\u00a0\n<ul>\n<li>Currently, the own revenues generated by the municipal entities in India <strong>are barely 0.15% of the GDP<\/strong> compared to 0.6% in developing countries and 2.1% in developed nations.\u00a0<\/li>\n<li>This led to the <strong>high dependence on funding<\/strong> from the state and central exchequer.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>Poor management of finances.<\/li>\n<li>Delay in audit of financial reports.\u00a0<\/li>\n<li>The Centre has been maintaining that <strong>robust finances of urban local bodies are crucial<\/strong> to emerge as a viable third tier of government.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>About the City Finance Rankings 2022<\/strong><\/h2>\n<ul>\n<li>It aims to &#8211;\n<ul>\n<li><strong>Evaluate<\/strong>, recognise and reward India\u2019s cities (Urban Local Bodies\/ULBs) on the basis of the quality of their current financial health.<\/li>\n<li>Help ULBs to <strong>improve <\/strong>over time in financial performance.<\/li>\n<li><strong>Motivate <\/strong>city\/state officials and decision makers to implement municipal finance reforms.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li>The participating ULBs will be evaluated on <strong>15 indicators across three key municipal finance assessment parameters<\/strong>, namely &#8211;\u00a0\n<ul>\n<li>Resource Mobilization<\/li>\n<li>Expenditure Performance and\u00a0<\/li>\n<li>Fiscal Governance<\/li>\n<\/ul>\n<\/li>\n<li>The cities will be <strong>ranked at the national level<\/strong> on the basis of their scores under any one of the following four population categories &#8211; Above 4 million, Between 1-4 million, 100K to 1 million, less than 100,000.\u00a0<\/li>\n<li><strong>Significance of City Finance Rankings:<\/strong>\n<ul>\n<li>At a state and national-level, the rankings will provide c<strong>ritical insights to key policy makers <\/strong>into the state of finances of ULBs.\u00a0<\/li>\n<li><strong>ULBs will be able to self-evaluate <\/strong>their own performance vis-\u00e0-vis other cities, which can help them in<strong> self-improvement<\/strong> in future.\u00a0<\/li>\n<li>All 4500+ cities \/ ULBs across all states\/UTs would be encouraged to participate in the City Finance Rankings 2022.\u00a0<\/li>\n<li>It would create<strong> a conducive environment for developing a robust municipal finance ecosystem<\/strong> for promoting financially healthy, transparent and sustainable cities.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>About the \u2018City Beauty Competition\u2019<\/strong><\/h2>\n<ul>\n<li>It aims to encourage, recognise and felicitate the transformational efforts made by cities and wards in India <strong>to create beautiful, innovative and inclusive public spaces<\/strong>.<\/li>\n<li>Wards and public places of cities would be judged against the <strong>five broad pillars<\/strong> &#8211;\u00a0\n<ul>\n<li>Accessibility\u00a0<\/li>\n<li>Amenities\u00a0<\/li>\n<li>Activities\u00a0<\/li>\n<li>Aesthetics and\u00a0<\/li>\n<li>Ecology<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>\u200b\u200b\u200b\u200b\u200b\u200b\u200b<strong>Other initiatives for urban development in India<\/strong><\/p>\n<p>\u00a0<\/h2>\n<p><img decoding=\"async\" src=\"https:\/\/lh4.googleusercontent.com\/AWEpz7CoCnmWeNaz1vGTM6Q01Oca0ES9SvLYNzBAVI46E0_7IZGwQauTG9I1AN5N1iNUskCK9KnmHlj5GopH4RUm_hu7CrG420fMghp0bJihDEAOVGvxmUghVmW2HRxh1jabTzDeGUjQ153coOuyAw\" alt=\"\" \/><\/p>\n<p>\nImage Caption: Urban Development Trajectory in India<\/p>\n<ul>\n<li>Some of the single sector interventions are, Swachh Bharat Mission (<strong>SBM<\/strong>), Atal Mission for Rejuvenation and Urban Transformation (<strong>AMRUT<\/strong>), Pradhan Mantri Awas Yojana (<strong>PMAY<\/strong>), etc.\u00a0<\/li>\n<li>On the other hand, the <strong>Smart Cities Mission<\/strong> (SCM) is based on integrated planning and implementation.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What are the components of AMRUT scheme?<\/strong><\/h3>\n<p>The components of the AMRUT consist of capacity building, reform implementation, water supply, sewerage and septage management, storm water drainage, urban transport and development of green spaces and parks.<\/p>\n<p>&nbsp;<\/p>\n<h3><strong>Q2) What is cities contribution to GDP of India?<\/strong><\/h3>\n<p>According to NITI Aayog report, Cities in India occupy just 3.0% of the nation\u2019s land, but their contribution to gross domestic product (GDP) is a massive 60.0%.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/www.thehindu.com\/news\/national\/guidelines-for-finance-and-beauty-based-ranking-of-cities-launched\/article66314234.ece\" target=\"_blank\" rel=\"nofollow noopener\"><u>Guidelines for finance and beauty-based ranking of cities launched<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/timesofindia.indiatimes.com\/india\/govt-to-rank-revenue-starved-civic-bodies-on-fiscal-discipline\/articleshowprint\/96580317.cms\" target=\"_blank\" rel=\"nofollow noopener\"><u>ToI<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/blog.mygov.in\/editorial\/trajectory-of-indias-urban-development\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>mygov.in<\/u><\/a>\u00a0|\u00a0<a href=\"https:\/\/pib.gov.in\/PressReleasePage.aspx?PRID=1887067\" target=\"_blank\" rel=\"nofollow noopener\"><u>PIB<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>City Finance Rankings aims to evaluate, recognise and reward India\u2019s cities on their current financial health.<\/p>\n","protected":false},"author":5,"featured_media":33522,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-33521","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/33521","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=33521"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/33521\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/33522"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=33521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=33521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=33521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}