Module: General Practice
Q159: To boost the "Municipal Bond" market, the Budget 2026-27 introduced a specific monetary incentive. Which of the following accurately describes this incentive?
✅ Correct Answer: B
The government offers a ₹100 Crore incentive for single bond issuances exceeding ₹1,000 Crore.
Municipal Bonds ("Munis") are debt instruments issued by civic bodies (Municipal Corporations) to fund urban infrastructure like water supply, sewage, and roads.
Historically, municipal bond issuances in India have been small and sporadic.
This high-value threshold (>₹1,000 Cr) is designed to encourage large cities (like Mumbai, Pune, Bengaluru) to tap the market for substantial projects rather than relying solely on state grants.
The existing incentive for smaller issuances (up to ₹200 Cr) under the AMRUT scheme continues for smaller towns.
Municipal Bonds ("Munis") are debt instruments issued by civic bodies (Municipal Corporations) to fund urban infrastructure like water supply, sewage, and roads.
Historically, municipal bond issuances in India have been small and sporadic.
This high-value threshold (>₹1,000 Cr) is designed to encourage large cities (like Mumbai, Pune, Bengaluru) to tap the market for substantial projects rather than relying solely on state grants.
The existing incentive for smaller issuances (up to ₹200 Cr) under the AMRUT scheme continues for smaller towns.