Public Finance for Cities

<jats:title>Abstract</jats:title> <jats:p>Public Finance for Cities: The Benefit Principles from Wicksell to Stiglitz addresses one of the most significant yet unresolved issues facing India’s development trajectory: how to finance the rapid expansion of cities in a manner that is safe, sustainable, inclusive, resilient, climate-smart, and humane. Even as Indian cities are engines of economic growth, their municipal governments are nevertheless financially constrained, fundamentally reliant on transfers, and ill prepared to meet the growing demand for civic services and infrastructure. This book argues that a fundamental redesign of urban financing is necessary for sustainable urban growth rather than relying solely on intergovernmental transfers and ad hoc handouts. The book connects local taxes with service delivery, fiscal accountability, and democratic approval by cantering municipal finance around the benefit principle of taxation. It provides a strong foundation for changing urban finance by drawing on both classical and contemporary public finance theories from Joseph Stiglitz to Knut Wicksell. The book examines property taxes, land-based finance, user fees, beneficiary fees, and new urban revenue systems by fusing theory with data from around the world and case studies from Indian municipalities. It evaluates international best practices, proposes a new framework for benefit-based urban financing, and provides valuable insights for India and other emerging nations. For academics studying public finance, urban economics, policymakers, municipal leaders, and advanced students seeking practical solutions to the financial challenges facing rapidly expanding urban areas, this volume is an essential resource.</jats:p>