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Question
With regard to the sources of income of a Municipality, answer the following question:
What are the sources of income of a Municipality?
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Solution
The sources of income of a Municipality are:
- Income from Taxes: It includes tax on property, tax on vehicles, tax on advertisements and entertainment tax.
- Casses Rates: The citizens are required to pay cess on consumption water and electricity and licence fees for various vocations. Other such cesses are octroi duty and toll tax.
- Grants-in-Aid: Grants from State Government constitute an important source of funding.
- Remunerative Enterprises: The Municipal Committee may set up commercial complexes or establish other remunerative enterprises.
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