Strategic Financial Review of Urban Local Bodies in Uttarakhand: Exploring Autonomy and Economic Development

Rural-to-urban migration is widespread in Uttarakhand, which tends to accelerate over the years. Among those migrating in Uttarakhand, 70.3% of people migrated within the state between 2008-2018. This number increased to 76% between 2018-2022. In the 1960s, urban planning for cities situated in the northern regions of Uttar Pradesh and those located far from the state capital aimed to accommodate a population ranging from approximately 400,000 to 600,000 individuals. However, the planners did not anticipate the substantial population growth that followed. As of 2023, the estimated population of Uttarakhand has reached around 11.6 million. With the population increasing exponentially, there have been some modifications in city planning, but it has not kept up with the rapid pace of population growth. This has resulted in challenges and strains on existing infrastructure, services, and resources, as well as the need for urgent measures to address the growing demands of the population. In the event of low-quality urbanization, characterized by inadequate infrastructure and services, the carrying capacity of urban areas is likely to be exceeded, leading to the growth of urban poverty. This paper aims to emphasize how the municipal financial system in Uttarakhand is not aligned with the changing socio-economic realities of the state. It also highlights the crucial need for structural changes in revenue streams and areas of expenditure, drawing parallels with the 74th Constitutional Amendment Act of 1992.