Lucknow: The Uttar Pradesh government has emphasised the need to strengthen the financial capacity of urban local bodies to improve civic services and support urban infrastructure development. The issue was discussed at a conference in Lucknow, where mayors from the state’s 17 municipal corporations deliberated on urban challenges and ways to improve municipal revenue.
Finance and Parliamentary Affairs Minister Suresh Kumar Khanna addressed the conference, titled Listening to Cities, Addressing Urban Challenges, held at Hotel Taj Mahal in Gomti Nagar on Wednesday. The event was jointly organised by the Sixth State Finance Commission, UNICEF and Dr Ram Manohar Lohia National Law University.
Khanna said the financial self-reliance of urban local bodies was essential for developing strong and modern cities. He stressed the need for municipalities to improve revenue generation, strengthen financial management and use available resources effectively to meet the demands of growing urban populations.
Municipal Revenue Generation and Financial Management in Focus
The conference discussed measures to improve municipal finances, including expanding the property tax base, improving tax collection and increasing revenue from user charges and municipal assets.
Participants also examined the potential of municipal bonds as a financing option for urban infrastructure projects.
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Sanitation, sewerage systems, septage management and solid waste management were identified as important priorities for urban development.
The possibility of introducing tourism-related fees or a municipal tourism tax in religious and tourist destinations was also discussed, subject to applicable legal provisions. The discussion focused on the additional pressure that pilgrims and tourists can place on civic infrastructure and public services in these cities.
Mayors shared their experiences and concerns relating to drinking water, drainage, waste management, urban planning and climate change. The conference also highlighted the need to improve facilities for children, women and disadvantaged groups and to develop cities that are safe, clean and inclusive.
Lucknow Estimates ₹7,603 Crore Requirement for Expanded Areas
Lucknow Mayor Sushma Kharkwal raised concerns about damage to infrastructure in flood-affected areas along the Gomti River and the financial resources required for reconstruction, drainage improvements and restoration of civic facilities.
She also referred to the development needs of areas recently incorporated into the Lucknow Municipal Corporation.
According to a report submitted to the State Finance Commission, approximately ₹7,603 crore would be required to develop these expanded areas and provide essential infrastructure and civic amenities.
The estimate was presented in the context of the municipal corporation’s broader funding requirements.
Mayor Places Five Key Financial Demands Before State Finance Commission
Kharkwal urged the Sixth State Finance Commission to double the municipal corporation’s prescribed share of financial resources. She also placed specific funding requirements and revenue-related requests before the commission.
The demands included:
- ₹2,184 crore for development in expanded areas, street lighting and administrative expenditure.
- ₹5,825.85 crore for drinking water and sewerage infrastructure.
- Allocation of the prescribed 2% share of stamp duty to the municipal corporation.
- Compensation for revenue losses arising from tax exemptions granted to certain categories.
- Compensation relating to revenue losses associated with properties under the Uttar Pradesh State Industrial Development Authority (UPSIDA).
These were requests submitted by the Lucknow mayor to the commission; the source does not indicate that the funding demands have been approved.
Conference Examines Accountability and Institutional Capacity
The discussions also covered the financial condition and institutional capacity of urban local bodies, with reference to the constitutional roles of the 16th Finance Commission and the Sixth State Finance Commission.
Participants considered the importance of strengthening transparency, accountability and financial management in municipal administration.
Deepak Kumar (IAS: 1990: UP), Additional Chief Secretary in the Finance Department and chairperson of the Sixth State Finance Commission, delivered the inaugural address. Commission Secretary Siddharth Srivastava welcomed the participants.
Other attendees included Neel Ratan, Alok Dixit, and UNICEF representatives Dr Soumen Bagchi and Piyush Antony, along with other officials and representatives.
The conference provided a platform for mayors to discuss the financial and administrative challenges facing urban local bodies and present their priorities for improving civic infrastructure and public services across Uttar Pradesh.
