External assistance forms less than 10 per cent of total Plan finances in India. Urban sector gets much less of this assistance according to Plan priorities. However, this source of finance is available to agencies who satisfy the criteria of cost recovery and institutional capacity building. City corporations with stronger resource base can satisfy these criteria and consequently may attract external assistance in order to enhance better quality of life. But it is only likely that smaller urban areas will have to depend on budgetary support for many years to come if balanced growth is our planning objective.
