Four ways to generate income for the municipal corporation of india
Answers
As per the Report of the Twelfth Finance Commission, India has 3,723 ULBs, of which 109 are MCs, 1432 are municipalities and 2182 are Nagar Panchayats. The total revenue of the municipalities grew from Rs. 11,515 crore in 1998-99 to Rs. 15,149 crore in 2001-02 at a compounded average growth rate (CAGR) of 9.6 per cent.
Answer:
* Major sources of receipts/income for the Urban Local Bodies are:
As is clear Muncipalities have different sources of income.
*@ Some of these such as tax and non-tax revenue are generated by these bodies themselves.
But owing to rapid pace of urbanisation and the need for urban infrastructure development, own revenue generated by municipalities often falls short of their expenditure requirements.
Thus, over and above their own revenue, most local bodies depend significantly upon the devolution of resources and grants from the State and Central governments; and borrowings from financial institutions.
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