- financial paucity
- taxes not sufficient
- 0.6% revenue generated by municipal bodies in india, compared to 0.6% in developing and 2.1% in developed nations
- corruption
- underpaid staff, resorting to corruption
- excessive state control
- state govt have power to supersede and dissolve municipal bodies
- state govt have powers like approval of municipal budget
- more control exercised via accounting, audit systems
- limited devolution of functions
- states slow in transferring fn listed in 12th Schedule to ULB
- unplanned urbanization
- failed to cope with inc needs of population
- situation worsening because of rural influx in towns, cities thus converting them into ghettos
- multiplicity of agencies
- works not well allocated among different agencies
- diffused accountability
- eg. Jal Boards, developmental authority
- headed by bureaucrats
- not accountable
- dilute importance of elected members
- dilution of efforts
- multiple layers of planning, administration, resource allocation end up in sub-optimal results
- substandard personnel & shortage
- lack of professional services
- land tilting in urban areas
- > 90% land titles in india are unclear
- leads to loss of 1.3% in GDP
- limited capital expenditure
- thus, administrative expenses, financial charges are rising, but capital expenditure minimal
- low people participation
- ecological challenges
- due to population growth
- rise of industries
- leading to ecological degradation (water, air, land)