Asian Journal of Research in Business Economics and Management
Year : 2017, Volume : 7, Issue : 6
First page : ( 237) Last page : ( 250)
Online ISSN : 2249-7307.
Article DOI : 10.5958/2249-7307.2017.00084.6

Financial Analysis of an Urban Local Body in India Chosen under Smart City Project: A Case Study of Kochi Municipal Corporation

Banerjee Rakhi

Gurudas College, India. rakhi.banerjee77@gmail.com

Online published on 15 June, 2017.

Abstract

Urban India constitutes 31.16% of the National Population of India according to the Census of India 2011. Long term development for India is incomplete without provisioning of the services required for urban planning, slum improvement, sanitation conservancy and public amenities. In light of urbanization, the growing need of the urban population and requirements of transfer of grants under smart city projects, the importance of financial management of Urban Local Bodies (ULBs) have increased. With this perspective in the background, in the present paper we would explore the financial position of Municipal Corporation of the city of Kochi (a city chosen for smart city project). The Fourteenth Finance commission has laid down two minimal basic conditions for receipt of grant from Central Government. First condition is increase in internal revenue and second adoption of accrual method of accounting. Given the conditions of the Fourteenth Finance Commission, in this paper we have used data based on accrual system of accounting to see the position of revenue (total and internal), expenditure (capital and revenue) of the Kochi Municipal Corporation and the adequacy of funds required for expenditure. We have also calculated certain ratios to explore the dependency of the corporation on the superior governments for funds. The paper has highlighted the deficiency of revenue generation by the ULB to finance it's total expenditure

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Keywords

ULB, Financial Management, Internal Revenue, Revenue Expenditure, Capital Expenditure.

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