More on cities and infrastructure.

“With nearly 300 million urban residents, India’s cities contribute over 60% of GDP and account for more than 90% of Government revenues.”

From the World Bank’s Project Appraisal Document for the Third Tamil Nadu Urban Development Project, May 25, 2005.

“To reorient India’s failed infrastructure policy, the government will have to reduce emphasis on user fee revenues and focus on providing cost-effective service to users. It must realize that infrastructure is not where you raise revenue; that is a function for taxes. Infrastructure is where you spend those taxes, which then generates more revenue through increased economic growth.”

From Partha Mukhopadhyay’s piece “Falling through the cracks: India’s failing infrastructure policy.”

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