Municipal finances and decentralized government

Abstract

This chapter summarizes the research on urban finances in India and China. It first discusses the background urbanization and economic growth in the two countries, followed by a description of the decentralized nature of government at the local level in India and China, following which this chapter debates and discusses reforms in municipal finance (both revenues and expenditures) in the two countries. The chapter ends by concluding and drawing lessons from India from a practitioner’s perspective.