Financing capital expenditure through municipal bond market in Navi Mumbai Municipal Corporation


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In India, the urban local bodies do not have decentralization in various functions. Therefore, municipal corporations find various issues in functioning and revenue generation. It has resulted into either shortfall or low quality infrastructure services to people. The Navi Mumbai Municipal Corporation is developed as modern municipal corporation. Municipal corporation invested financial resources in development for civic infrastructure. Therefore, population, industries, educational institutions, markets, transport and other facilities are expanding very fast. The ordinary least square regression results shows that the municipal corporation has positive co-relation with revenue receipts from LBT, property tax and town planning. The revenue expenditure is positively co-related with municipal estate, public health and hospitals, primary and secondary education. The engineering work for poor is negatively correlated with revenue expenditure. The capital receipts are positively co-related with fire brigade, auditorium, sports and cultural programs and security deposits and water supply. The capital expenditure is positively co-related to women and child welfare schemes, primary education, environment monitoring. It is negatively co-related with dumping grounds. The municipal corporation must raise funds from capital market through municipal bonds. More investment must be made in civic infrastructure. Similarly, corporation must spend more funds on poor, welfare of women and children. Municipal corporation must monitor and protect environment. It must give more priorities for processing of solid and e-waste, protect local culture, primary and secondary education, health care for all and technology in provision of civic services. It must develop human resource and create best place to live in metropolitan region.

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    • Figure 1. Revenue and capital receipts with total receipts of NMMC (per cent)
    • Figure 2. Revenue and capital receipts, grants and tax of NMMC
    • Table 1. The revenue and capital receipts and expenditure (from 2000–2001 to 2017–2018) (CAGR)
    • Table 2. The revenue receipts of Navi Mumbai Municipal Corporation (CAGR) (2000–2001 to 2017–2018)
    • Table 3. The revenue expenditure of Navi Mumbai Municipal Corporation (CAGR) (2000–2001 to 2017–2018)
    • Table 4. The capital receipts of Navi Mumbai Municipal Corporation (CAGR) (2000–2001 to 2017–2018)
    • Table 5. The capital expenditure of Navi Mumbai Municipal Corporation (CAGR) (2000–2001 to 2017–2018)
    • Table 6. Regression result of revenue receipts
    • Table 7. Regression result for revenue expenditure
    • Table 8. Regression results for capital receipts
    • Table 9. Regression results for capital expenditure