Articles by Soumen Bagchi

This paper attempts to analyse the role of property tax as a source of local revenue in India, particularly in the wake of the decentralisation initiative through the constitutional amendment of 1992. It studies the property tax reforms launched by some of the urban local bodies with the objective of improving their capacity to generate revenue, and analyses the financial implications of these reforms. The paper argues that there is a need for assessment of property tax based on factors that reflect the city's economic activities. The ability of the property owners to pay also needs to be taken into account.

The government has extended tax benefits to investments made in municipal bonds issued for urban infrastructure. Along with incentives, however, there is also a need to develop investor confidence in such bond issues.

In recent years arranging funds for infrastructural facilities, particularly urban basic services, has become the major plank of urban development policy in India. In the absence of a current account surplus, governments have been forced to look for alternative sources of financing long-term investments needed for urban basic services. This paper examines the nitty-gritty of alternative/unconventional modes of financing infrastructure, particularly, urban basic services in the country and analyses their feasibility in the current urban context.