Question

A recommendation to improve the fiscal health of local bodies might include an emphasis on public-private partnerships (PPPs) and privatization of certain services to:

• A. Increase the reliance on state grants and subsidies.
• B. Reduce the financial burden on local bodies.
• C. Expand the scope of traditional municipal services without efficiency improvements.
• D. Prioritize political appointments over performance-based management in service delivery.

Answer 1

Answer:

B. Reduce the financial burden on local bodies.

• SFCs may recommend involving the private sector in service delivery through PPPs or Build-Operate-Transfer (BOT) models.

• This helps to secure capital investment and reduce the operational and maintenance costs for local bodies.