Telangana ULBs score high on tax, revenue mop-up: RBI

According to a recentReserve Bank Of India(RBI) report on Municipal Finances, was next only to Bihar (0.84%) and AP (0.60%) in terms of municipal bodies spending on creating fixed assets and other developmental works at 0.37% of GSDP in 2019-20 (budget estimates).

Greater the capital outlay in any budget (central, state, urban or rural bodies), it indicates that amenities in the region were being improved. Telangana has steadily increased the capital outlay for MCs over the years and its share of GSDP has grown.

Capital outlay to GSDP per cent share was 0.18% in 2017-18, 0. 35% in 2018-19 (revised estimates) and 0.37% in 2019-20. Another interesting aspect is that Telangana (along with AP) is one of the only two states that allow corporations to borrow through Bonds.