
India's urban local governments face significant challenges in utilizing allocated funds, with reports indicating that around 40% of the central government's 86,000 crore annual urban development budget remains unspent due to administrative capacity gaps and staff shortages. Despite technological advances like GIS aiding property tax collection, efficiency remains low at 56%, and cities struggle to align their revenue growth with economic contributions. Experts highlight the need for improved governance and political will to better manage urban resources and infrastructure development.
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