Finance Brief 12: Financing Swachh Bharat: Finding the money for Clean India

TITLE: Financing Swachh Bharat: Finding the money for Clean India

AUTHOR(S): Norman G & Renouf R

YEAR: 2016

ABSTRACT: India's latest national sanitation programme, Swachh Bharat ('Clean India'), is Prime Minister Narendra Modi's striking initiative to re-energise the drive towards improved sanitation access and lower rates of open defecation. For an initiative of this scale to succeed, every level of government must be able to access the funds necessary to reach millions of households. This Finance Brief examines the current financial outlook for Swachh Bharat, and considers potential sanitation funding models. A key innovation is a 0.5% addition to the national Service Tax, ring-fenced for sanitation and expected to raise US $150 million per annum.