City Finance Rankings, 2022

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Recently, the Ministry of Housing & Urban Affairs launched this City Finance Rankings, 2022 to evaluate, recognize and reward India’s Urban Local Bodies.

Why in news?

  • The rankings aim to motivate city/state officials and decision-makers, to implement municipal finance reforms.
  • The participating ULBs will be evaluated on 15 indicators across three key municipal finance assessment parameters, namely:
    • Resource Mobilization
    • Expenditure Performance
    • Fiscal Governance.
  • The cities will be ranked at the national level based on their scores under any one of the following four population categories:
    • Above 4 million
    • Between 1-4 million
    • 100K to 1 million
    • Less than 100,000
  • The top 3 cities in each population category will be recognized and rewarded at the national level as well as within each state/state cluster.

Significance of the ranking:

  • City Finance Rankings are an effort to analyse and help the ULBs in identifying areas in their financial performance where they can make further improvements, to be able to deliver quality infrastructure and services to its citizens.
  • The rankings will serve as a constant motivation for city/state officials to continue to implement municipal finance reforms.
  • At a state- and national level, the rankings will highlight the outcomes achieved by municipalities and provide critical insights to key policymakers into the state of finances of urban local bodies.


Q1) What are urban local bodies?

Urban Local Bodies (ULBs) are small local bodies which administer or govern a city or a town of specified population, vested with a long list of functions delegated to them by the state governments.

Source: Ministry of Housing and Urban Affairs launches 2 key initiatives to take India’s Urban Rejuvenation journey to next level