While the Central Government undoubtedly provides strategic leadership, state legislatures have a critical role in not just transferring capacities, assets, and functionaries, but also in creating an empowering environment through administrative and institutional transformation. A close assessment of total municipal income reveals that they accounted for only 1.08 percent of GDP in 2007–2008, and then dropped to 1.03 percent of GDP in 2012–2013.
