Question

With regard to the functions and sources of income of a Municipality, answer the following question:

What are the sources of income of a Municipality?

Answer 1

Discretionary Functions:
Municipalities establish libraries and reading rooms, constructing stadiums for sports activity, organising fairs and exhibitions, providing, transport facilities and other amenities for peoples, convenience. Under Afe/zrw Rozgar Yojana, financial assistance was given to small artisans for self-employment. There was also a provision for housing and slum clearance programmes.
The sources of income of a Municipality are:

1. Income from Taxes: It includes tax on property, tax on vehicles, tax on advertisements, and entertainment tax.
2.  Cases Rates: The citizens are required to pay cess on consumption water and electricity and licence fees for various vocations. Other such cesses are octroi duty and toll tax.
3. Grants-in-Aid: Grants from State Government constitute an important source of funding.
4. Remunerative Enterprises: The Municipal Committee may set up commercial complexes or establish other remunerative enterprises.