Reforms thrust earns Telangana State Rs 2,508 crore credit facility

Hyderabad: The Telangana State has joined Andhra Pradesh and Madhya Pradesh to top the list of States implementing urban local bodies (ULB) reforms as stipulated by the Department of Expenditure, Ministry of Finance. TS has come at the third position.

The Ministry of Finance, pleased with their performance, has allowed them to borrow to the tune of Rs 7,406 crore.

Of this, Telangana is eligible to mobilise additional financial resources of Rs 2,508 crore through open market borrowings.

Reforms are aimed at financially strengthening the ULBs in the State and to enable them to provide better public health and sanitation services. Economically rejuvenated ULBs will also be able to create good civic infrastructure.

A State is required to notify floor rates of property tax in ULBs which are in consonance with the prevailing circle rates (i.e., guideline rates for property transactions).

It should also notify floor rates of user charges in respect of the provision of water-supply, drainage and sewerage which reflect current costs/ past inflation. The State would put in place a system of periodic increase in floor rates of property tax/user charges in line with price increases.