The Reserve Bank of India (RBI) on November 13, 2024, issued a Report on Municipal Finances.
The following has been stated:
• The analysis in this Report has been widened to cover more MCs and strengthened with findings from a primary survey of MCs on property taxes, a significant revenue source for the corporations. The key highlights of the Report are:
o While the revenue account of the MCs has remained in surplus, their heavy reliance on transfers and grants from the upper tiers of the government continues.
o The own source revenues are not adequate for meeting the revenue expenditure for most of the corporations, which can affect their functional and financial autonomy.
o Property tax revenues of MCs would benefit from initiatives such as adoption of Geographic Information System (GIS) mapping, digital payment systems, dynamic valuation systems, and better monitoring to plug leakages.
Comments on this publication may be sent to the Director, Division of Local Finances, Department of Economic and Policy Research, Reserve Bank of India, 1st Floor, Maratha Mandir Road, Mumbai - 400 008 or through e-mail.
[Notification No 2024-2025/1495]
