Read the passage provided below:
The financial autonomy of municipal corporations in developing economies remains heavily constrained by a reliance on intergovernmental fiscal transfers and unpredictable state grants. While municipal bond markets offer a promising non-budgetary avenue for financing urban infrastructure, their widespread adoption faces systemic institutional barriers. Credit rating agencies often penalize local bodies due to opaque financial accounting, fragmented revenue streams, and a history of uncollected property taxes. Furthermore, municipal governments frequently lack the technical expertise required to structure debt instruments, leaving them susceptible to high borrowing costs or default risks. However, treating technical illiteracy or rating stringency as the primary root cause oversimplifies the crisis. The core structural bottleneck lies in the reluctance of higher tiers of government to grant genuine fiscal decentralization, particularly the statutory authority for local bodies to set user charges and revise local tax rates independently. Without constitutional enforcement of local revenue-raising autonomy, developing municipal bond markets remains a superficial financial remedy that fails to alter the underlying fiscal dependency of local administration.
Based on the passage above, which of the following statements correctly capture the main idea and central argument of the author?
- Developing municipal bond markets serves only as a partial financial measure unless higher tiers of government grant genuine statutory revenue-raising powers to local bodies.Cevap
- The fundamental obstacle to municipal financial self-reliance is the structural reluctance of state governments to enact deep fiscal decentralization.Cevap
- CTechnical illiteracy among local administrative staff and credit rating penalties are the sole primary drivers of municipal fiscal failure.
- DExpanding intergovernmental fiscal transfers is the most sustainable mechanism to ensure long-term stability for urban infrastructure projects.