Economic imperative: Why cities are crucial for GDP growth
“Audit of ULBs & PRIs is another important area which we cannot ignore, as nearly 15 cities of the country contribute over 50% of the country’s GDP and Cities like Mumbai, Delhi, Bengaluru, Chennai, and Hyderabad contribute about 30% of GDP and these cities could add 1.5% more annual GDP growth,” Murthy said.
ALSO READNow, Japan’s R&I ups India’s sovereign rating, third upgrade in 2025
In the budget for 2025-26, the Centre has announced provisions for an Urban Challenge Fund (UCF) of Rs 1 lakh crore aimed at transforming cities into economic hubs by improving infrastructure and promoting sustainable development.
Despite the enhanced funding, the cities still face issues such as pollution, traffic jams, slums, water shortages and poor digital infrastructure.
Beyond audit: A shift to proactive city financial management
“Therefore, our combined efforts should be directed towards – how we can shift from accounting to City Financial Management by data-driven decision making for a vibrant future of our cities,” he said.
ALSO READIndia-New Zealand FTA forges ahead, Delhi to host next round of talks on October 13
The focus would be to evaluate the progress made by these cities vis-à-vis the availability of core infrastructure, such as a reliable supply of essential services like water, electricity, and sanitation. Secondly, stress will be governed to a sustainable environment, like creating a clean and green urban landscape, developing green spaces, promoting renewable energy and building sustainable transportation systems. Other areas of focus would be improving the living standards of citizens by providing better services and amenities and fostering a conducive environment for job creation and investment, he added.