Publication: India : Synthesis Study of Public Financial Management and Accountability in Urban Local Bodies
Date
2007
ISSN
Published
2007
Author(s)
World Bank
Abstract
This study assesses the current state of
Public Financial Management and Accountability (PFMA)
systems in Indian urban local bodies. It identifies,
analyzes, and documents good practices, focusing on their
existing context, success factors, and replicability. It is
important to mention that urban governance in India is a
state subject and there are vast differences in the levels
of reform that have achieved in different states. For the
purpose of comparison, this study has developed good
practice benchmarks in each PFMA area and used those to
compare practices across Urban Local body (ULB)s. The study
analyzes linkages between the legislative, budgeting,
implementation, reporting, and oversight process in urban
local bodies. Benchmarks and indicators have been developed
for each strategic area. Analysis of policy, practice, and
progress in each strategic area has also been conducted.
This study synthesizes existing literature on PFMA in urban
local bodies, identifies key PFMA areas where focused
attention was required, and suggests ways forward. The main
objectives are: 1) To describe the current PFMA environment
in urban local bodies in India and identify replicable good
practices; 2) To use the Public Expenditure and Financial
Accountability (PEFA) benchmarks in developing good practice
in each PFMA activity and to develop indicators for
assessing PFMA in Indian urban local bodies; 3) To identify
challenges and suggest priorities for improving the PFMA
environment in Indian urban local bodies so as to feed into
Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
This study does not focus on the financial performance or on
quality of expenditure in terms of specific aspects of
efficiency or effectiveness of spending by urban local
bodies. It does not cover intergovernmental relations either
in any level of detail except to the extent that such
relations impact PFMA performance. It is important to
mention that this study does not attempt to develop a
scoring system for indicators and therefore does not rate
relative performance among urban local bodies. It does
however suggest as a key recommendation that states could
adopt a scoring system or a "PFMA Report Card" for
the urban local bodies as a means of comparison of PFMA
performance to build a demand for better governed ULBs.
Link to Data Set
Citation
“World Bank. 2007. India : Synthesis Study of Public Financial Management and Accountability in Urban Local Bodies. © Washington, DC. http://hdl.handle.net/10986/7666 License: CC BY 3.0 IGO.”