Enabling Legal Environment for Meeting the Rational Nexus Principle: Insights From the Use of Development Charges in India

Publication Date

7-1-2021

Document Type

Article

Publication Title

Public Works Management and Policy

Volume

26

Issue

3

DOI

10.1177/1087724X20916470

First Page

239

Last Page

258

Abstract

Globally, governments at all levels—national to local—are fiscally constrained, especially in the developing countries of the Global South (Africa, Latin and Central America, and the developing countries of Asia). One such country is India, which is also experiencing rapid growth in urban populations and is seeking additional revenues from public finance sources, such as development charges. In India, these charges need to meet the rational nexus principle to be legally robust. Through a review of India’s state-level enabling legislation, this article seeks to identify ways in which the enabling legal framework for development charges can promote or hamper the rational nexus principle. Finally, this article provides insights that can help jurisdictions in India, and potentially in other Global South countries, craft or amend enabling legislation so that such legislation can withstand rational nexus principle–related legal challenges.

Funding Sponsor

San José State University

Keywords

development charges, India, infrastructure: capital financing, legislation, municipal finance, policy, regulatory issues

Department

Urban and Regional Planning

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