What is the main revenue base of municipalitiy?

Municipal Finance is critical to municipal development. It can affect the nature and location of development. A government of India from time to time has introduced various reforms in order to enhance the revenue base of municipal government. 

 The important revenue base of the MCs can be broadly categorised into following sectors.


  1. Tax revenue: Property Tax, Octari, Advertisement Tax, Tax on Animals, Vacant Land Tax.
  2. Non - Tax revenue: User charges, Municipal Fees, Sale & Hire charges, Lease amounts 
  3. Assigned (shared) revenue: Entertainment Tax, Surcharge on Stamp duty, Profession Tax, Motor Vehicles Tax. 
  4. grant in aids: Plan grant made thru upper tier of the government 
  5. loans: Loans borrowed by the local authorities for capital works
  6. other receipts: Sundry receipts, Lapsed deposits, Fees, Fine, Rent & Sales.