Context: The Report on Municipal Finances shows significant improvement since the first edition released two years ago. The latest report examines the fiscal position of 232 municipal corporations from 2019-20 to 2023-24.
About Financial Status of Municipal Corporations: (Source: RBI Report on Municipal Finances)
- Revenue Composition (FY24 Estimates):
- Own sources (taxes, fees, user charges): 50%.
- Revenue grants (Central/State governments): 25%.
- Other sources (rental, compensations, investments):Remaining 25%.
- Short-term Trends (FY20 vs. FY24):
- Share of own taxes rose from 27.3% to 30%.
- Share of fees and user charges increased from 18.7% to 20.2%.
- Revenue grants share dropped from 27.9% to 24.9%.
- State Performance (FY24):
- Highest own tax revenue:
- Karnataka (53.8%), Telangana (50.3%), Tamil Nadu (44.3%), Jharkhand (44.0%).
- Lowest own tax revenue: Rajasthan, Odisha, and Uttarakhand.
- Highest own tax revenue:
- Expenditure Trends:
- Capital expenditure increased from 56.1% (2019-20) to 61.5% (FY24).
- Revenue expenditure decreased from 43.9% (2019-20) to 38.5% (FY24).
