Q1.Explain the composition of Municipal Corporation? Explain the various sources of funds for
Municipal Corporation.
Answers
Answer:
municipality is the layer of government which has the responsibility of development of cities and towns. The 74th Constitutional Amendment Act (CAA), enacted in 1992, resulted in significant devolution of funds, functions and functionaries to this tier of government and hence functional autonomy of local governments. Following the passage of the 74th constitutional amendment which gave constitutional status to Urban Local Governments, various States created enabling legislation to transfer responsibilities of local infrastructure and service delivery to this tier of government. With the implementation of this Act, Urban Local Governments have been classified into three types of Municipal bodies:
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Among the different types of Urban Local Governments mentioned above, Municipal Corporations enjoy the maximum degree of fiscal autonomy and functions although the specific fiscal and functional powers vary across the states.
What are the Functions of Municipalities?
The Twelfth Schedule of the Constitution lists the various Functions of Municipalities. These are:
Urban planning including town planning.
Regulation of land-use and construction of buildings.
Planning for economic and social development.
Roads and bridges.
Water supply for domestic, industrial and commercial purposes.
Public health, sanitation conservancy and solid waste management.
Fire services.
Urban forestry, protection of the environment and promotion of ecological aspects.
Safeguarding the interests of weaker sections of society, including the handicapped and mentally retarded.
Slum improvement and upgradation.
Urban poverty alleviation.
Provision of urban amenities and facilities such as parks, gardens, playgrounds.
Promotion of cultural, educational and aesthetic aspects.
Burials and burial grounds; cremations, cremation grounds; and electric crematoriums.
Cattle pounds; prevention of cruelty to animals.
Vital statistics including registration of births and deaths.
Public amenities including street lighting, parking lots, bus stops and public conveniences.
Regulation of slaughter houses and tanneries.
Of these some functions are obligatory in nature and some others are discretionary. Further, there is a wide variance between States in terms of the assignment of overall functions and within that, obligatory and discretionary functions, to the municipalities.
What Information does Municipality Budgets Provide?
Like all budget documents, budgets of Municipal Corporations/Councils is also a policy document which provides details of the local body’s sources of income or receipts and use of these resources or expenditure allocated to different heads. The expenditure heads, in turn, are determined by the various functions Municipalities are required to perform.
What are the Sources of Receipts/Income of Municipalities?
The major sources of receipts/income for the Urban Local Bodies are:
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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.
As per the Constitution, the Government of India has been making allocations to local bodies through five year plans and finance commissions (Central Finance Commissions, State Finance Commissions). Beginning from the First Five Year Plan allocations have been made to Urban Local Governments for various purposes.
As regards the Central Finance Commissions, which primarily make recommendations on the distribution of tax revenues between the Union and the States, and also amongst the States, the Tenth Finance Commission introduced exclusive grants for rural and urban local governments. Since then various Finance Commissions have given concrete recommendations regarding municipal finances and the criteria for devolution of funds to Urban Local Bodies.
Given below is a snapshot of revenue receipts and capital receipts (in this case, suspense accounts) of Kolkata Municipal Corporation for the financial year 2015-16:
Answer:
a municipal corporation made up of a ward committee