Suspense Crime Sach Ka Dam
Municipal corporations should levy adequate user charges on essential services such as water supply and sanitation to raise non-tax revenue and provide quality public services, a Reserve Bank of India (RBI) report said. The ‘Report on Municipal Finances’ 2019-20 to 2023-24 (Budget Estimates) takes a deep look at the fiscal position of 232 municipal corporations (MCs), with a special focus on ‘Own sources of revenue generation in municipal corporations: opportunities and challenges’.
This way you can increase revenue
According to the report, “Municipal corporations can significantly increase non-tax revenues by levying fair and adequate fees for essential services such as water supply, sanitation and waste management. By doing this, uninterrupted availability of high-quality public services can be ensured.” The report said that these measures, combined with more transparent and accountable governance practices, can contribute to strengthening the financial health of municipal corporations.
What charges can be levied?
According to the RBI report, if this happens, it will start a cycle of better services to the public, stronger revenues, and continuous upgradation of urban infrastructure. The main non-tax revenue sources include user charges, trade license charges, layout/building clearance charges, development charges, betterment charges, sales and rent charges, market charges, slaughterhouse charges, parking charges, and birth and death registration charges. The sources of tax revenue include property tax, vacant land tax, water benefit tax, advertisement tax, sewerage benefit tax, tax on animals, and tax on vehicles.
