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Source: The post is based on the article “‘City Finance Rankings, 2022’ portal goes live, MoHUA invites Urban Local Bodies to participate in the first of its kind initiative” published in PIB on 20th March 2023.
What is the News?
The ‘City Finance Rankings 2022’ portal has been made live by the Ministry of Housing and Urban Affairs(MoHUA).
What is City Finance Rankings?
Aim: To evaluate, recognize and reward municipal bodies across the country on the basis of the quality of their current financial health and improvement over time in financial performance.
Parameters: The participating Urban Local Bodies(ULBs) will be evaluated on 15 indicators across three key municipal finance assessment parameters, namely: (i) Resource Mobilization, (ii) Expenditure Performance and (iii) Fiscal Governance.
Categories: The cities will be ranked on the basis of their scores under any one of the following four population categories: (i) Above 4 million, (ii) Between 1-4 million, (iii) 100K to 1 million, (iv) 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.
Note: The entire ranking processes will be managed end-to-end in a 100% paperless manner on the Ministry’s cityfinance.in platform.
What is the significance of City Finance Rankings?
The City Finance Rankings will provide critical insights to policymakers into the state of finances of urban local bodies.
ULBs will also stand to benefit by participating in the fiscal rankings as they will be able to evaluate their own performance vis-à-vis other cities, which will motivate them for improvement in future.