1As a part of Urban Development Planning Studio 2014, Masters in Planning, CEPT University, Ahmedabad, 21 January 2014

Financeincome & expenditure

Municipal

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a u t h o r i t i e s │ i n s t i t u t i o n s │ p o w e r s │ r e s p o n s i b i l i t i e s │ r o l e s

So what does the taxes collection signify about the authority?

It signifies power, autonomy & independence of the authority for development over a space.

3

What does the expenses indicate?

Capacity to undertake developmental activities

Priorities of the authority for development

a u t h o r i t i e s │ i n s t i t u t i o n s │ p o w e r s │ r e s p o n s i b i l i t i e s │ r o l e s

4

Developmental activitiestaken up by the following authorities at district level

urban rural

Collector DDO

5

villages Gram panchayat

Taluka panchayat

District panchayat

Panchayat dept

State government

Institutional framework for

developmental activities

in 12 peri-urban

12

pe

ri-u

rba

n v

illa

ge

s

6

Taxes Gram panchayat

House tax

Light tax

Professional tax

Cleanliness tax

R u r a l

7

Gram panchayat │ Taluka panchayat │ District panchayat

Land revenue जमीन महसूर

TaxesR u r a l

8

13th Finance Commission Grant

Annual Grants

MP – MLA Fund

Hig

h d

ep

en

de

nc

y r

atio

GrantsR u r a l

9

abc

Special Grants

xyz

Hig

h d

ep

en

de

nc

y r

atio

GrantsR u r a l

10

UrbanMunicipality

Collector

State Government

Institutional framework

for developmental

activities in

areas

- Approvals

- Forward funds

- Implementation

- Planning

- Identification

M e h s a n a

role

s

11

Mehsana Municipality

Taxes & own Income

grants

inc

om

e

IncomeSources

Mehsana

Municipality

12

Income

Opening balance

Mehsana

Municipality

2013 - 2014

Own income

Grants & Funds 34.80 crore

20.75 crore

33.75 crore

89.30 crore

own income

grants & funds60%

40%

Inc

om

e –

de

pe

nd

en

cy

ra

tio

As per Mehsana Municipality Budget 2013-14

13

Taxes & Charges

Mehsana

Municipality

2013 - 2014

User charge

Property Rent

Water Tax

Penalty

Electricity Tax

Conservancy tax

Professional Tax

Water Charge

Property TaxGutter Tax

TP Betterment charge

Impact Fee60%70%of total own income

(20.75 crore)

Inc

om

e -

ow

n in

co

me

14

Taxes & Charges

Mehsana

Municipality

2013 - 2014

Thumb rules

Professional Tax

Water Charge

Property Tax

Area municipality limit : 3145 hec Population : 1.90 lakhs

Rs. 6,500/-

Rs. 11,000/-

Rs. 22,000/-

For 1 hectare inclusion of area in Mehsana municipality …approx.

With FSI remaining same…

Other Tax Rs. 10,000/-

Approx. Rs. 50,000/- p.a.

Inc

om

e -

ow

n in

co

me

-a

nn

ua

l

15

Taxes & Charges

Mehsana

Municipality

2013 - 2014

Thumb rules

TP Betterment charge

Area municipality limit : 3145 hec Population : 1.90 lakhs

Rs. 1,50,000*/-

For 1 hectare floating of TP scheme … approx.

Inc

om

e -

ow

n in

co

me

–o

ne

tim

e

Collected over 10 years sometimes...

16

GrantsMehsana

Municipality

2013 - 2014

Inc

om

e -

gra

nts

Annual Grant

Special Grant

Basic per capita

16

Entertainment tax

Land revenue

Octroi grant

Urban development

G.M.F.B.G.

Cleanliness abhiyan

Town planning grant

Health staff subsidyD.A.Allowance

Water works Grant

Pay & use grant

Flood Relief fund

S.J.C.M.UD yojana(DUDA)

15%Vivekadhin

Incentive conservancy

Nirmal gujarat

S.J.yojana

S.J.S.R.Y (Loan subsidy)

Amrut Dhara

Mission mangalam

Town planning admin

Revenue Grants

G.M.F.B.G(State)

Pay & use grant(State)

Cleanliness abhiyan yojana(State)

Road repair & main. (State)

Town planning Grant(State)

Malaria prevention(State)

Shop & Establishment(State)

Basic per capita grant(State)

S.J.S.R.Y (Lone subsidy) (State)

Cable T.V. (State)

Proffessional Tax(State)

Entertainment tax(State)

Nirmal gujarat grant(State)

Land revenue grant(State)

Octroi grant(State)

Health staff subsidy(State)

Town planning admin(State)

S.J.S.R.Y admin. (State)

District administration(State)

Town planning admin(State)

Incentive conservancy(State)

U.C.D.Grant subcidy(State)

New Anganvadi Grant(State)

M.L.A.Grant(State)

M.P.Grant(central)

Flood Relief fund(State/(central))

Urban development(State)

Amrut dhara(State)

12th Finance commission(central)

S.J.C.M.U.D (DUDA) (State)

Water works(State)

13th Finance commission(central)

15%Vivekadhin Grant(State)

Capital Grants

• G.M.F.B.G

• S.J.C.M.Urabn development yojana(DUDA)

• Incentive conservancy

• Clinliness abhiyan Grant

• Pay & use grant

• Water works Grant

• Amrut dhara

• Swarnim jayanti C.M.urbandevelopement yojana

• 15%Vivekadhin Grant

• Cable T.V.

• Road repair & maintainance

Physical Infrastructure

• Nirmal gujarat grant

• Urban development grant

• Shop & Establishment

• New Anganvadi Grant

Social infrastructure

Physical

Infra.

grant

17 crore

7%93%

Social

Infra.

grant

1 crore

19

Expenditures

Mehsana

Municipality

2013 - 2014

Revenue expenditure

Capital expenditure 54.85 crore

20.82 crore

88.90 crore

revenue exp.

capital exp.

70%

30%

Ex

pe

nd

itu

res

–o

pe

ratin

g r

atio

–c

ap

ita

l u

tiliza

tio

n

Approx. Balance 13.23 crore

As per Mehsana Municipality Budget 2013-14

75

.67

cr

20

CapitalExpenditure

Mehsana

Municipality

2013 - 2014

Urban development

Sanitary capitalIDSMT

Underground sewage

Garden capitalWater works capital

Building Capital

Elec. capital

Crematorium Capital

Road Works

30%of capital expenditure

(54.85 crore)

Inc

om

e -

ow

n in

co

me

56%71%

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Financial

Health

Mehsana

Municipality’s

2013 - 2014

Financial analysis