Question

Name any 5 sources of income of Municipality.

Answer 1

".The five sources of income of municipality are:-

1. The income from taxes, including on houses, entertainment, electricity, water tax, vehicles, property and land.

2. Collection of toll tax from commercial vehicles.

3.  Commercial activities like hotels, tourist centres, education cess, renting and sale of municipal property,.

4. Financial grants from state government .

5. Professional tax collection from all the employers, i.e. government and private sectors."

Answer 2

Main sources of the income:

1. Income from Taxes:

The main source of income of a Municipal Council is taxes, such as Property Tax, Octroi, Tax on Vehicles, Tax on Animals, Tax on advertisements. Toll tax, Profession Tax, Entertainment Tax, etc.

2. Income from Property, Electricity and Water Supply:

Municipal Council collects taxes from the people for the provision of water supply and electricity. Apart from this, the Municipal Council has income from its shops, inns, rest houses, janjghars etc.

3. Government Grants:

The Municipal Council receives regular and specific grants from the government which constitute also a major source of its income.

4. Loans:

The Municipal Council can raise loans from banks and other financial institutions with the prior approval of the government.


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