Centre to Boost Municipal Bonds as Collateral to Improve ULB Finances

Imagine cities need money to fix roads, manage trash, and keep things running smoothly.

Right now, they mostly get money from the central and state governments, but this isn't enough.

The government is thinking about making special city bonds, called municipal bonds, more attractive to banks and other big money groups.

This is like making a popular toy easier for stores to buy, so more of them will stock it.

If more people want to buy these bonds, it means cities can sell them more easily to get the money they need.

This could help cities pay for important projects without always asking the government for help.

However, only the cities that are doing well financially can easily sell these bonds, while others struggle because they don't have enough money or have too many debts.

The government hopes this change will make it easier for more cities to get the funds needed for improvements.