This paper assesses the expenditure needs of two of India’s megacities,
Mumbai and Bengaluru, using a normative approach. The paper aims to
assess the extent of underspending or surplus spending on services and
finds that both cities are underspending on services with respect to capital
expenditure. However, for operation and maintenance of services, Mumbai
is actually spending more than the normative standard, while Bengaluru
continues to underspend.