Question

Discuss the means through which the corporation earns its income.

Answer 1

The municipal corporation is responsible for the execution and implementation of policies for social and economic development of a specific urban centre. Therefore, they need money for infrastructure, maintenance and transportation. Their main source of income is revenue collection through various means, which can be discussed as under:

1. Octroi is the main tax collected by the corporation. It is the tax levied on the goods that come into town.

2. Other taxes like water, electricity and pilgrimage taxes are also a source of income.

3. They receive loan from the government.

4. The state government also provides financial assistance to the corporation.