URBAN FINANCE

ANALYSIS OF TAX STRUCTURE OF CITY NASIK AND COIMBATORE

&COMPARISION OF THE NASIK AND COIMBATORE CITY

BACHELOR’S OF PLANNING

By

PRAVEEN MUKATI

Scholar No. 141109029

Under the Guidance of

Prof. Rajat Soni Sir

DEPARTMENT OF ARCHITECTURE AND PLANNING

MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY

BHOPAL – 462003 (M.P.), INDIA

COIMBATORE MUNICIPAL BUDGET CITY 2017-18

INCOME

TYPE OF REVENUE HEADS PERCENT SUB-HEADS

PERCENT (%)

TAX

PROPERTY TAX 16%

Property Tax for General Purposes 47.32

Water Supply & Drainage Tax Component 33.33

Education Tax 19.35

OTHER TAXES 5% Profession Tax 99.43

Pilgrim Tax 0.57

OTHER INCOME 24%

Market Fees 6.86

Fees for Slaughter Houses 0.20

Parking Fees 2.55

Development Charges 0.27

Rent on Lease of Land 0.91

Rent on Shopping Complex 12.41

Rent on Community Hall 0.87

Rent on Buildings 0.49

Road Cut Restoration Charges 6.95

Demolition Charges for Unauthorized Constructions

0.23

Other Income 1.21

Miscellaneous Recoveries 2.29

Interest on Investments 1.84

Interest from Bank 0.29

Rent on Bunk Stalls 1.42

Garden / Park - Receipts 0.55

Initial Amount for New Water Supply Connections

0.67

Water Supply / Drainage Connection Charges

0.05

Metered/Tab Rate Water Charges 15.49

Charges for Water Supply through Lorries 0.02

Septic Tank Cleaning Charges 0.02

Sewerage Connection Charges 0.12

Drainage Maintenance Charges 29.11

Drainage Deposit 2.95

Initial Amount (Omani Bus Stand/ Fruit Shop

10.18

Income from Amman Unavagam 47 47 80 1.14

96

Cable Laying Fees 0.96

SERVICE CHARGES AND FEES

5%

Swimming Pool 0.52

Trade License Fees 27.90

Building License Fees 24.95

Encroachment Fees 15.61

Corporation Contribution to Cps 9.91

Fees for Bays and Other Receipts in the Bus Stand

5.76

Fees on Pay & Use Toilets 6.14

Other Fees 8.44

Copy Application Fees 0.20

Receipts from Hospital & Dispensary 0.35

Receipts from Solid Waste Management 0.22

SALE AND HIRE CHARGES

0% Sale of Unserviceable Stock and Stores

100.00

ASSIGNED REVENUE 11% Duty on Transfer of Property 100.00

DEVOLUTION FUND 37% Devolution Fund (SC) 100.00

GRANT GRANTS

3% Grant from Government 0.92

I.P.P. (V) – Grant 99.08

CAPITAL FUND HEADS PERCENT

GRANT AND CONTRIBUTION

2.68%

Corporation Contribution 45.90

Grant from Government 11.55

Grants from the Government- (Government of Tamil Nadu)

15.96

Grants from the Government- (Government of India)

26.59

LOAN 12.75% Loan from TUFIDCO/INDIAN BANK 100.00

EXPENDITURE

HEADS PERCENT SUB-HEADS PERCENT

PERSONAL COST 28%

SALARIES(Pay Including Personal pay, Ex-Gratia Bonus)

99.07

(II) OTHERS (Travel Expenses, Leave Travel Concession, Supply of Uniforms, Conveyance Charges, Training Programme – Expenses, Staff Welfare Expenses)

0.93

TERMINAL & RETIREMENT

BENIFIETS 10%

Pension (Superannuation / Retiring / Invalid Etc.)

73.32

Corporation Contribution 7.12

Death-Cum-Retirement Gratuity 18.33

Special Provident Fund - Cum Gratuity Scheme – Con

0.20

Group Insurance Scheme - Management Contribution

0.75

Pension and Leave Salary Contributions

0.28

OPERATING EXPENSES

21%

Maintenance of Gardens/Parks 0.09

Maintenance Expenses For Street Lights 10.58

Power Charges - Drainage,Sewerage System

8.49

Power Charges - Head Works Pumping Stations

17.40

0.00

Power Charges For Street Lights 5.64

Wages 52.68

Sanitary / Conservancy Expenses 0.94

Expenses On Sanitary Materials (Lime / Pleeching Powder/Equip)

2.01

Cost Of Medicines 0.50

Hospital Expenses Other Than Medicines

1.69

REPAIRS AND MAINTANENCE

EXPENSES 7%

Light Vehicles – Maintenance 0.04

Repairs & Maintenance - Roads And Pavements - Black Topped

0.00

Maintenance Of Office Buildings 0.01

Repairs & Maintenance Of Office Tools And Plants Heavy Vehicles – Maintenance

1.59

Repairs & Maintenance - Roads And Pavements Concrete

0.00

Repairs & Maintenance - Roads And Pavements – Others

0.02

Repairs & Maintenance - Buildings, Repairs & Maintenance - Storm Water Drains

0.00

Open Drain 0.10

Repairs & Maintenance 0.10

Instruments - Plant & Machinery 0.00

Rent For Buildings 0.01

Maintenance Of Kalyana Mandapams / Community Halls

0.01

Maintenance Charges - Water Supply Systems

0.52

Maintenance Charges - Drainage 0.48

Sewerage System Maintenance Expenses - Elementary Schools

0.07

Maintenance Charges - Twad Board Metro Water / Water Cess To Tamil Nadu Pollution Control Board

0.07

Hire Charges For Supply Of Water Through Private Lorry

1.41

PROGRAM EXPENSES

1%

Expenses On Opening Ceremonies 0.12

Expenses, Anti - Filaria / Anti Malaria Operations (Insecticides)

1.23

Election Expenses 86.36

Corporation Contribution To Capital Works&Jnnurm

0.05

Professional Charges 8.34

Amma Unavgam Expenses 1.03

Fairs & Festivals/Exibition 2.86

ADMINISTARATIVE EXPENSES

3%

Telephone Charges 4.98

Legal Expenses 10.10

Stationery & Printing Advertisement Charges

18.04

Other Expenses 6.84

Computer Operational Expenses 11.64

Books & Periodicals And Magazines 0.87

Postage And Telegrams And Fax Charges

0.07

Electricity Consumption Charges for Office Building Contributions (Tnius/Ailb Training Centre)

0.05

Sitting Fees/Honorarium for the Councilors Council Department - Travel Expenses On Hospitality / Entertainment

47.42

FINANCE EXPENSES

0%

Bank Charges 0.13

Interest on Loans 90.22

Audit Fees 9.65

CAPITAL WORKS 29%

Buildings 3.93

Bridges 0.00

Open Drains 0.22

Furniture 0.61

Electrical Installations - Lamps - Light Fittings

0.16

Plant And Machinery 0.00

Roads And Pavements - Concrete - Gross Block

2.60

Roads And Pavements - Block Topped - Gross Block

3.36

Roads And Pavements - Others - Gross Block

0.22

Zone Development 1.03

Mayor Fund Councilors Fund 4.31

Head Works - Oht Works 70.15

Drainage and Sewerage 13.33

Ground Water Wells /Bore wells 1.06

LOANS 0% Loan from TUFIDCO 70.03

Loan from TNUDF 29.97

ABSTRACT OF GENERAL FUND, WATER SUPPLY & DRAINAGE AND ELEMENTARY EDUCATION FUNDS

Details General Fund

Water Supply & Drainage Fund

Elementary Education Fund

Revenue Receipts 46,490.84 16,483.67 3,296.68

Capital Receipts 38,456.27 2,515.00 0.00

Total 84,947.11 18,998.67 3,296.68

Revenue Expenditure 33,468.79 11,043.96 814.42

Capital Expenditure 51,208.46 7,795.42 1,607.65

Total 84,677.25 18,839.38 2,422.07

SURPLUS 159.29 874.61

ABSTRACT OF GENERAL FUND

` in lakhs

Particulars

Actuals (2015-16) Budget Estimate (2016-17)

Revised Estimate (2016-17)

Receipts (Revenue)

Tax Revenue 8,877.96 10,347.29 10,837.15

Assigned Revenues & Compensations 3,914.91 4,600.00 4,052.12

Rental Income from Municipal 2,661.70 2,799.08 2,540.65

Properties

Fees & User Charges 3,097.94 2,695.01 2,825.79

Sale & Hire Charges 122.16 20.00 18.23

Revenue Grants, Contribution and 12,570.93 14,450.00 14,550.57

Subsidies

Income from Investments 7,251.02 1,075.00 239.24

Interest Earned 281.40 50.00 67.67

Other Income 7,798.28 9,584.17 6,134.59

Grants, Contribution for specific 1,190.29 760.00 653.50

purposes

Total 47,766.59 46,380.55 41,919.51

Receipts (Capital)

Grants, Contribution for specific 27,757.85 24,517.50 18,850.00

purposes

Secured Loans 0.00 5,416.00 2,900.00

Total 27,757.85 29,933.50 21,750.00

Total Receipts 75,524.44 76,314.05 63,669.51

Payments (Revenue)

Establishment Expenses 10,858.04 14,948.14 15,121.45

Administrative Expenses 1,417.14 2,351.00 2,060.65

Operations & Maintenance 12,481.50 12,408.00 13,392.66

Interest & Finance Charges 346.00 322.09 443.92

Programme Expenses 5.21 221.00 43.00

Grants, Contribution and Subsidies 2,672.11 831.00 1,199.00

Other Liabilities 25,882.67 20,204.50 18,903.54

Total 53,662.67 51,285.73 51,164.22

Payments (Capital)

Repayment of Secured Loans 204.37 1,715.44 820.78

Fixed Assets 30,156.04 31,587.16 20,539.07

Total 30,360.41 33,302.60 21,359.85

Total Payments 84,023.08 84,588.33 72,524.07

Surplus/(Deficit) (8,498.64) (8,274.28) (8,854.56)

NASIK MUNICIAPL BUDGET REPORT AND TAX STRUCTURE

REVENUE INCOME TAXES DESCRIPTION Sub- categorization Of Taxes Percentage Share

A . DIRECT TAX- REVENUE INCOME Income Tax

15

Capital Gains tax

5% Securities Transaction

Tax

0.03% Corporate Tax

30%

Minimum Alternative Tax 22.50%

Dividend distribution Tax 15%

Banking Cash Transaction Tax 0.50%

Wealth Tax 12 % is applicable on individual earning of 1 crore and above

On net wealth exceeding 30 Lakhs 1%

Property Tax

Residential house (self-occupied or let-out) 16%

Water Tax

6%

INDIRECT TAX- OWN SOURCES Octroi Tax

63.80%

Service Tax

14.50%

Sales Tax & VAT The government split all the good into 3 categories called schedules.

Schedule 3 1%

Schedule 2 5%

Schedule 1 2%

Others 15%

NON TAX SOURCES Toll tax & Road Tax

4% Professional Tax

2%

Entry tax

7.50% Entertainment Tax

7%

Stamp duty/Registration fee 2% Local body Tax

14%

Education Cess Education cess(EC) 3%

Secondary and Higher Education cess (SHEC) 4%

Swach Bharat Cess

0.50% Infrastructure Cess**

2%

2.50%

6%

Hoarding Tax

23% B. CAPITAL INCOME

Loans

28.50% Grants

23.40%

NURM

31%

Others

17.10%

EXPENDITURE C. REVENUE EXPENDITURE

Establishment Expenditure

53.60%

Operation and Maintainance expenditure 20.10% Interest on loan

26.30%

Total Revenue Expenditure

48434.94

D. CAPITAL EXPENDITURE Capital Expenditure

Principle of Loans taken All figures in Lakhs) 20417.4 (

Total capital Expenditure

0

All figures in Lakhs 20417.4

**Infrastructure cess is applicable on petrol/LPG/CNG-driven motor vehicles of length not exceeding 4 meters and engine capacity not exceeding 1200cc Cess on diesel motor vehicles of length not exceeding 4 meters and engine capacity not exceeding 1500cc

Cess is applicable on big sedans and SUVs.

SUMMARY OF MUNICIPAL FUND

YEAR 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-

13 2013-

14 2014-

15 2015-

16 2016-

17

Total Revenue income 25066.19 29526.25 32218.78 32444.06 36824.36 41359.54 46851.96 53075.31 56615.16 60280.03 63952.39 65653.21 67405.84 69511.88 70167.88 70603.78

Total Capital income 10825.25 5685.64 1396.15 1376.56 1917.87 8651.3 26355.7 27154.4 27695.5 27338.5 26758.2 0 0 0 0 0

Total revenue Expenditure 17009.28 18653.26 19916.44 20663.08 21052.26 20496.4 23142.49 25114.53 29148.16 31657.89 34345.79 37362.9 40744.71 44420.31 48434.94 52835.8

Total Capital Expenditure 18355.59 17343.48 13639.77 11525.05 14540.66 24593.12 56232.28 58665.08 57537.58 58126 57563.49 23985.34 28549.61 29142.09 19764.19 20417.4

COIMBATORE BUDGET REPORT During the financial year 2017-

18 based on the guidelines of Swachh Bharat Mission and Cleanup Tamil Nadu Mission. Over last few months reserve sites worth more than 200 crores have been retrieved by Coimbatore City Municipal Corporation. During this financial year, the corporation’s unwavering efforts for the removal of encroachments, retrieval of various reserve sites of the corporation will continue and the sites will be developed with the support and co-operation from the public. This budget has been designed with a vision – the vision of the city that an average citizen would dream of - the vision that every student, professional, elderly or house wife would dream of! Dreams have now been translated into vision, and in the upcoming year ,the vision would translate into reality, making Coimbatore one of the best cities in the country to lead a happy and a healthy life. budget which includes Smart Waste Management, Installation of IOT devices, Smart Citizen App, Restoration and Rejuvenation of Water Bodies, Installation of Solar Energy Lamps, Road Development, Transport enhancement facilities, Improvement of green space, Development of multi level car park facilities, Improving the corporation Schools, Improvement of Drinking Water Distribution, Provision of Under Ground Sewage Schemes. Overall the budget for 2017-18 will be a scalable budget covering all the essential components in the urban development spectrum.

Revenue Generation

Infrastructure- The main objective of the Business plan is to generate revenue through the non traditional sources with minimum investments and adopting the policies and strategies. -scope to control expenditure in Solid Waste Management sector and Street Lighting sector etc By introducing the private participation in all sectors will result expenditure reduction. Regarding street lighting, the analysis will be towards various options to maintain new technology of street lighting with the help of private participation.

Assets The major assets for the municipalities are the immovable assets. This is one more potential area to develop the asset values and increase the municipal revenue. The analysis includes find out the various options to make use of vacant lands by BOT basis. Revising rents for the remunerative assets up to market values. -In street lighting sector, also there is scope to minimize the expenditure towards power consumption and operation & maintenance. Related to street lighting the data has been collected as follows: (i) Number and types of street lighting and its operation and maintenance

(ii) Expenditure towards salaries and Power charges Energy Saving. A significant number of municipalities in Tamil Nadu rely on motive power for conveying water, either through significantly long distances (typically source to distribution point) or to meet contour gradient requirements within the distribution system. Pump Stations or Booster Stations achieve this objective by providing the necessary motive power to increasing the energy of the fluid to ensure water supply and distribution at required pressure and quantity. Staff Reduction and Privatization. There is 2,137 permanent staff excluding consolidated pay members, working as sanitary workers. The average salary for each sanitary worker is around Rs. 5,500 per month. It is inferred from the pay roll that, about around 10 percent of workers are liable to retire by 2015. So, it would be a viable option that, the Corporation start privatisation efforts by 2007 and would completely privatize their collection, transportation and disposal operations by 2015. The remaining staffs could be trained for other jobs and transferred to the departments where there is a shortage of staffs Privatization Option. Government of Tamil Nadu has initiated privatization of street lighting in most of the ULBs in Tamil Nadu. Private contractors have to replace all streetlights by energy efficient lights, installation of power saver devises at necessary location and maintains the same. The replacement of existing lights proposed to replace in a phased manner for next two years (2006 & 2007). Separate cash flow for street lighting was prepared to ascertain the savings due to the replacement of new energy efficient lights.

Solid Waste Management Compare to all sections public health division will maintain maximum number of workers and more number of vehicles. The vehicles will exhibits more operation and maintain cost. With respect to solid waste management, the analysis is focused on comparison of manpower with municipal staff to the private operator. Parking Fees Land-use and economic activity drives the parking demand in Coimbatore City attracts significant business and personal two-wheeler traffic which puts up specific parking requirement. Private vehicles can be seen parked haphazardly along the roadside. Based on the field visit following locations were identified for on street parking of two wheelers. For estimating the parking fee, it was assumed that 40 percent of the total vehicle will be parked less than or equal to one hour and 60 percent of the total vehicle will be parked more than one hour. Vehicles that are parked more than an hour can be charged four rupees per vehicle and for other vehicles two rupees can be charged. An annual vehicle increment of two percent has been assumed to calculate the future revenue generation

Advertisement Fee Lease amount collected as fixed by the council for advertising on lampposts and hoardings erected within the Corporation limit are accounted in advertisement fee. In case of Coimbatore Corporation average revenue generated through the advertisement fee is very low (Rs. 6.24 lakh). Hence, there is a scope to increase the advertisement fee by extending tax /fee coverage net. Only 25 percent of the advertisement fee raised will be transferred to respective Urban Local Bodies balance transferred to the State government. The total advertisement fee is Rs. 25.99 lakh per annum, with an annual increment of 2 percent on total advertise fee assumed, to accommodate increase in no of advertisement hoardings/ boards. Conservancy Fee Conservancy establishment cost is work out to 52 percent of total establishment cost of Coimbatore Corporation, to meet at least a part of collection expenses conservancy fee introduced. It is proposed to cover at least 50 percent of the residential properties and 100 percent of non domestic properties like hotels, lodges, commercial establishments and etc, For Residential properties Rs. 15 per month and non domestic properties Rs. 50 per month have to be charged. Upward revision of 15 percent every 3 years once from 2006-07 proposed.

ABOUT COIMBATORE AND NASIK Coimbatore, also known as Kovai is a major city in the Indian state of Tamil Nadu. Located on the banks of the Noyyal River surrounded by the Western Ghats, it is the second largest city in the state after Chennai and 16th largest urban agglomeration in India. It is the largest city in the Kongunadu region). It is administered by the Coimbatore Municipal Corporation and is the administrative capital of Coimbatore district. It is one of the fastest growing tier-II cities in India and a major hub for textiles, industries, commerce, education, information technology, healthcare, poultry and manufacturing in South India. It is often referred to as the "Manchester of South India" due to its cotton production and textile industries. Coimbatore is also referred to as the "Pump City" and it supplies nearly half of India's requirements of motors and pumps. The city is one of the largest exporters of jewellery, wet grinders, poultry and auto components with "Coimbatore Wet Grinder" and "Kovai Cora Cotton" recognised as Geographical Indications by the Government of India. Coimbatore has a population of 1,601,438.[1] As per the 2011 census based on pre-expansion city limits, Coimbatore had a population of 1,050,721 with a sex ratio of 997 females for every 1,000 males, much above the national average of 929.[46] It is the second largest city in the state after capital Chennai[47] and the sixteenth largest urban agglomeration in India.

Nashik lies in the northern part of Maharashtra state at 700 m (2,300 ft)[4] from the mean sea level. The river Godavarioriginates from the Brahmagiri Mountain, Trimbakeshwar about 24 km (15 mi) from Nashik and flows through the old residential settlement, now in the central part of the city. Due to high pollution created by factories in proximity of the city the river was dying at an alarming rate. It has since been successfully cleaned.[5] Other than Godavari, important rivers like Vaitarana, Bhima, Girana, Kashyapi and Darana flow across Nashik

Nashik is the fourth largest city in Maharashtra in terms of population. According to the Census of India, 2011, Nashik had a population of 1,486,053. Males constitute 782,517 of the population and females 703,536. Metropolitan Nashik population was 1,561,809 in which 821,921 were males and 739,888 were females. Nashik city had an average literacy rate of 89.85%: male literacy was 93.40%, and female literacy was 85.92%.[15]

The sex ratio is 894 per 1000 males for Nashik city. Child sex ratio is 865 girls per 1000 boys. In Nashik, 11.42% of the population is under 6 years of age.[16] In census year 2001 the Nashik Urban Agglomeration had a population of 11,52,326. Thus it was the fourth largest urban area of Maharashtra State after Mumbai, Pune and Nagpur. The projected population of Nashik urban agglomeration (which includes abutting urban areas like Deolali) as on 11 November 2012 is 15,62,769.

COMPARISION OF NASIK AND COIMBATORE

ON THE BASIC OF POPULATION CITY NASIK COIMBATORE

REVENUE INCOME TAXES DESCRIPTION Sub- categorization Of Taxes Percentage Share percentage difference

A . DIRECT TAX- REVENUE INCOME Income Tax

15% 26% 11%

Capital Gains tax

5% 3.75% 1.25%

Securities Transaction Tax

0.03% 1.20% 1.17%

Corporate Tax

30% 26% -4%

Minimum Alternative Tax 22.50% 24.25% 1.75%

Dividend distribution Tax 15% 12% -3%

Banking Cash Transaction Tax 0.50% 0.75% 0.25%

Wealth Tax

1% 4.50% 3.50%

Property Tax Residential house (self-occupied or

let-out) 16% 16% 2%

Property Tax for General Purposes (coimbatore)

47.32 15% -32.32%

Water Tax

6% 33.33% 27.33%

INDIRECT TAX- OWN SOURCES Octroi Tax

63.80% 52.16% -11.64%

Service Tax

14.50% 4.92% -9.58%

Sales Tax & VAT The government split all the good into 3 categories called schedules. 0.90% 0.09%

Schedule 3 1%

1%

Schedule 2 5%

5%

Schedule 1 2%

2%

Others 15%

15%

NON TAX SOURCES Toll tax & Road Tax

4% 15% 11%

Professional Tax

2% 19.28 17.28%

Entry tax

7.50% 12.52% 5.02%

Entertainment Tax

7% 4.48% -2.25%

Stamp duty/Registration fee

2% 1.20% -0.08%

Local body Tax

14% 8.25% -5.75%

Education Cess Education cess(EC) 3% 1.50% -1.50%

Secondary and Higher Education cess (SHEC) 4% 3.70% -0.03%

Swach Bharat Cess

0.50% 1.20% 0.70%

Infrastructure Cess**

2% 5% 3%

2.50% 0 -2.50%

6% 0 -6%

Hoarding Tax

23% 25% 2%

B. CAPITAL INCOME Grants

23.40% 42.51% 19.11%

assinged revenuue 0% 11% 11%

devolution fund 0% 37% 37%

MNREGA &NRULM

31% 36.59 5.59%

Others

17.10% 20.90% 3.80%

EXPENDITURE

53.60% 33.38% -20.22%

C. REVENUE EXPENDITURE

20.10% 38.12% 18.10%

Establishment Expenditure

0.00% 3% 3%

Operation and Maintainance expenditure 0.00% 0% 0%

administrative expenses

0.00% 0.64% 0.64%

finance expenses

26.30% 12.75% -13.55%

Programme Expenses rs. 48434.94 33468 48434.94

personal cost

20.75% 28% 7.25%

terminal and retirement benefit

11% 10% -1%

Interest on loan

0% 0% 0%

Total Revenue Expenditure rs. 48500 33468.39 -10031.61

D. CAPITAL EXPENDITURE Capital Expenditure Principle of Loans taken Total capital Expenditure rs 20417.4 51208.46 30791.46

SURPLUS

122.4 269.69 147.29

COMPARISON OF CITY BUDGETS BETWEEN TIER – 1 AND TIER – 2 CITIES

SUBMITTED BY –

Srishti Bhadauria – 141109026

Apoorva Singh – 141109027

Anusha Fatima – 141109028

Praveen Mukhati – 141109029

Aditya Kushwaha – 141109030

Hemant Bunker - 141109031

ESTIMATED PLAN INVESTMENT ALLOCATION

11 FIVE YEAR PLAN

JNNURM (2005 – 2011)

CITY BUDGET ALLOCATION

What is Public Finance?

According to Dalton,’ Public finance is the branch of knowledge which is concerned with

the income and expenditure of public authorities and with the adjustment of one to

another.’ It deals with the study of revenue and expenditure of the government at the

centre, state and local bodies.

The public authorities have to perform various functions such as maintenance of law an

order, provision of defence, production for bringing in economic development. The

performance of these functions require large amount of funds which is raised through

taxes, fees, fines, commercial revenues and loans.

Taxation

The most important source of revenue of the government is taxes. The act of levying

taxes is called taxation. A tax is a compulsory charge or payment imposed by

government on individuals or corporations. The persons who are taxed have to pay the

taxes irrespective of any corresponding return from the goods or services by the

government. The taxes may be imposed on the income and wealth of persons or

corporations and the rate of taxes may vary.

Taxes can be classified into various types on the basis of form,nature,aim and method

of taxation. the most common and traditional classification is to classify into direct

and indirect taxes.

Objectives of Taxes

Raising Revenue

Regulation of Consumption and Production

Encouraging Domestic Industries

Stimulating Investment

Reducing Income Inequalities

Promoting Economic Growth

Development of Backward Regions

Ensuring Price Stability

BASIS OF COMPARISON OF CITY BUDGET –

Population: This is the factor. RBI classifies cities based on population, number of

electoral constituencies into six tiers. Classification of Indian cities . This was

based on 2001 Census.

The cities which come under tier – 1 cities are –

The cities which come under tier – 2 cities are –

JAIPUR MADURAI GUWAHATI AMRITSAR

HEADS UNDER WHICH COMPARISON

HAS BEEN DONE FOR TIER – 1 CITIES

REVENUE INCOME

TAXES DESCRIPTION

A . DIRECT TAX- REVENUE INCOME

Income Tax

Capital Gains tax

Corporate Tax

Wealth Tax

Property Tax

Water Tax

INDIRECT TAX- OWN SOURCES

Octroi Tax

Service Tax

HYDERABAD BENGALURU MUMBAI CHENNAI KOLKATA

HEADS UNDER WHICH COMPARISON HAS BEEN

DONE FOR TIER – 2 CITIES

PROPERTY TAX

OTHER TAXES

OTHER INCOME

SERVICE CHARGES AND FEES

SALE AND HIRE CHARGES

ASSIGNED REVENUE

DEVOLUTION FUND

GRANTS

GRANT AND CONTRIBUTION

LOAN

PERSONAL COST

TERMINAL & RETIREMENT BENIFIETS

OPERATING EXPENSES

REPAIRS AND MAINTANENCE EXPENSES

PROGRAM EXPENSES

Sales Tax & VAT

NON TAX SOURCES

Toll tax & Road Tax

Professional Tax

Entertainment Tax

Stamp duty/Registration fee

Local body Tax

Education Cess

Swach Bharat Cess

Infrastructure Cess**

Hoarding Tax

B. CAPITAL INCOME

Grants

NURM

Others

EXPENDITURE

C. REVENUE EXPENDITURE

Establishment Expenditure

Operation and Maintainance expenditure

Programme Expenses

Interest on loan

COMPARISON ON THE BASIS OF POPULATION –

Population (Tier-I Cities)

Population (Tier-II Cities)

HYDERABAD 8.7 million

JAIPUR 3.5 million

BENGALURU 10.1 million

MADURAI 2.7 million

MUMBAI 21.3 million

GUWAHATI 1.91 million

CHENNAI 10.5 million

AMRITSAR 2.3 million

KOLKATA 4.6 million Population (Tier-II Cities)

JAIPUR 3.5 million

MADURAI 2.7 million

GUWAHATI 1.91 million

AMRITSAR 2.3 million

TIER I CITIES BENGALURU vs CHENNAI

1. Property tax and capital gain taxes in Chennai are higher than

Bangaluru.

2. No change in the rate of surcharge either for the corporates or the individuals, HUFs, firms etc.

3. There is a huge difference in the indirect taxation between the

two cities along with the greater variations under the heads such

as – non- tax sources and capital income.

4. The graph shows the differences between the Direct tax revenue

income.

0

0.05

0.1

0.15

0.2

0.25

0.3

0.35

A . DIRECT TAX-

REVENUE INCOME

Income Tax

Capital Gains tax

Corporate Tax

Wealth Tax

Property Tax

Water Tax

BENGALURU

CHENNAI

3.80% 6% 2% 1% 4.40% 0%

1.5

54%

11% 0.50%

99.43%

1.80% 0%

8% 0.59% 0

33% 5.40%

Non - tax resorces

BENGALURU CHENNAI

TIER II CITIES

JAIPUR VS MADHURAI

The graph shows the comparison of different types of taxes in the two

cities .

There is no significant variation in the scenario of both the cities .

The graph shows the comparison of different types of Expenditures in

the two cities .

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

Establishment Expenditure

Operation and Maintainance expenditure

Programme Expenses

Interest on loan

BENGALURU

CHENNAI

0

5

10

15

20

25

30

35

40

JAIPUR

MADURAI

TIER II CITIES

The graph shows the comparison of different types of taxes in

the two cities .

There is no significant variation in the scenario of both the cities

except there is variation in the percentages of Other incomes.

0

10

20

30

40

50

60

70

JAIPUR

MADURAI

GUWAHATI vs AMRITSAR

0 5

10 15 20 25 30 35 40 45 50

GUWAHATI

AMRITSAR

The graph shows the comparison of different types of

Expenditures in the two cities .

There is no significant variation in the scenario of both the cities

.

The graph shows the comparison of different types of capital

incomes in the two cities .

There is a great variation in the percentage between the two

cities and more than 30% increment is addressed in case of

Amritsar as compared to Guwahati.

There is 30 Lacs difference in the population as well.

0

5

10

15

20

25

30

35

GUWAHATI

AMRITSAR

COMPARISON ON THE BASIS OF DIRECTIONS –

TIER I CIITIES

CHENNAI vs HYDERABAD Water taxation is greater in Chennai whereas Property taxes

are levied double in Hyderabad. There is not much variation in the capital gains and wealth

taxes. There is a difference of 7.5 % in the Income tax levying and is

higher In Chennai. The graph shows the comparison of different types of Taxes in

the two cities .

The graph shows the comparison of different types of Non- tax

variation in the two cities .

BENGALURU vs CHENNAI

1. Water taxation is greater in Bengaluru whereas Property taxes are levied double in Chennai.

11%

2.50% 0 0

27%

33.33%

3.50% 3.50% 1.50%

0

46%

0%

Income Tax Capital Gains tax Corporate Tax Wealth Tax Property Tax Water Tax

TAXES VARIATIONS

CHENNAI HYDERABAD

3.80% 6% 2% 1% 4.40% 0%

1.5

54%

11% 0.50%

99.43%

1.80% 0% 8% 0.59% 0

33%

5.40%

NON - Tax sources

BENGALURU CHENNAI

2. There is not much variation in the capital gains and wealth

taxes.

3. There is a difference of 7.5 % in the Income tax levying and is higher In Bengaluru.

The graph shows the comparison of different types of Taxes in

the two cities .

The graph shows the comparison of different types of Non- tax

variation in the two cities .

15%

0 0

3.30%

10%

3.65%

11%

2.50% 0 0

27%

33.33%

Income Tax Capital Gains tax Corporate Tax Wealth Tax Property Tax Water Tax

Taxes

BENGALURU CHENNAI

MUMBAI vs KOLKATA

Water taxation is greater in Mumbai whereas Property taxes are levied double in Kolkata.

There is not much variation in the capital gains and wealth taxes

There is a difference of 7.5 % in the Income tax levying and is higher In Mumbai.

The graph shows the comparison of different types of Taxes in

the two cities .

3.80% 6% 2% 1% 4.40% 0%

1.5

54% 11%

0.50%

99.43%

1.80% 0%

8%

0.59% 0

33%

5.40%

NON - TAX SOURCES

BENGALURU CHENNAI

The graph shows the comparison of different types of Non- tax

variation in the two cities .

TIER II CITIES

11%

2.50% 0 0

27%

33.33%

3.50% 3.50% 1.50% 0

46%

0%

Income Tax Capital Gains tax Corporate Tax Wealth Tax Property Tax Water Tax

TAXES VARIATIONS

3.80% 6% 2% 1% 4.40% 0%

1.5

54%

11% 0.50%

99.43%

1.80% 0% 8%

0.59% 0

33%

5.40%

NON - Tax sources

JAIPUR vs GUWAHATI

1. There is no significant differences between the two cities and

the kinds of taxes levied are similar in percentages.

The graph shows the comparison of different types of Taxes in

the two cities .

The graph shows the comparison of different types of

Expenditures done in the two cities .

Only capital works show a significant higher % in case of Jaipur

since it has a larger population share in comparison to Guwahati

and also has a developed and compact pattern of livelihood.

0 5

10 15 20 25 30 35 40

JAIPUR

GUWAHATI

There are no significant variations in the pattern of investment

and expenditure done in the tier – 2 cities.

MADURAI vs AMRITSAR

1. There are no significant differences between the two cities and

the kinds of taxes levied are similar in percentages.

The graph shows the comparison of different types of Taxes in

the two cities .

24 21

35.5

23

0

12

22

32

23 19

0

33

0 0

19

0

EXPENDITURE

JAIPUR GUWAHATI

The graph shows the comparison of different types of

Expenditures done in the two cities .

There are no significant variations in the pattern of investment

and expenditure done in the tier – 2 cities.

CONCLUSION:

SCENARIO 2016-17

0

5

10

15

20

25

30

35

40

OTHER TAXES OTHER INCOME

SERVICE CHARGES AND

FEES

SALE AND HIRE

CHARGES

ASSIGNED REVENUE

DEVOLUTION FUND

GRANTS

24 21

35.5

23

0

12

22

32

23 19

0

33

0 0

19

0

EXPENDITURE

In the last two and half years administration has moved from

discretionary, favouritism based to system and transparency based

Inflation brought under control. CPI-based inflation declined from 6% in

July 2016 to 3.4% in December, 2016

Economy has moved on a high growth path. India’s Current Account Deficit

declined from about 1% of GDP last year to 0.3% of GDP in the first half of

2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5%

reduction in global FDI inflows. Foreign exchange reserves have reached

361 billion US Dollars as on 20th January, 2017

War against black money launched

Government continued on path of fiscal consolidation, without

compromising on public investment.

The Indian economy has been robust to mild shocks and IMF forecasts,

India to be one of the fastest growing major economies in 2017

CHALLENGES IN 2017-18

World economy faces considerable uncertainty, in the aftermath of major

economic and political developments during the last year

The US Federal Reserve's , intention to increase policy rates in 2017, may

lead to lower capital inflows and higher outflows from the emerging

economies

Uncertainty around commodity prices, especially that of crude oil, has

implications for the fiscal situation of emerging economies

Signs of retreat from globalisation of goods, services and people, as

pressures for protectionism are building up

TRANSFORMATIONAL REFORMS IN LAST YEAR

Passage of the Constitution Amendment Bill for GST and the progress for

its introduction

Demonetisation of high denomination bank notes

Enactment of the Insolvency and Bankruptcy Code; amendment to the RBI

Act for inflation targeting; enactment of the Aadhar bill for disbursement

of financial subsidies and benefits

Budget 2017-18 contains 3 major reforms. First, presentation of Budget

advanced to 1st February to enable the Ministries to operationalise all

activities from the commencement of the financial year. Second, merger

of Railways Budget with General Budget to bring Railways to the centre

stage of Government’s Fiscal Policy and Third, removal of plan and nonplan

classification of expenditure to facilitate a holistic view of allocations

for sectors and ministries

DEMONITISATION

Bold and decisive measure to curb tax evasion and parallel economy

Government’s resolve to eliminate corruption, black money, counterfeit

currency and terror funding

Drop in economic activity, if any, to be temporary

Generate long term benefits including reduced corruption, greater

digitisation, increased flow of financial savings and greater formalisation

of the economy

Pace of remonetisation has picked up and will soon reach comfortable

levels

The surplus liquidity in the banking system will lower borrowing costs and

increase the access to credit

Announcements made by the Honourable Prime Minister on 31st Dec,

2016 focusing on housing for the poor; relief to farmers; credit support to

MSMEs; encouragement to digital transactions; assistance to pregnant

women and senior citizens; and priority to dalits, tribals, backward classes

and women under the Mudra Yojana, address key concerns of our

economy

ROADMAP & PRIORITIES

Agenda for 2017-18 is : “Transform, Energise and Clean India” – TEC India

TEC India seeks to

Transform the quality of governance and quality of life of our people;

Energise various sections of society, especially the youth and the

vulnerable, and enable them to unleash their true potential; and

Clean the country from the evils of corruption, black money and

non-transparent political funding

Ten distinct themes to foster this broad agenda:

Farmers : committed to double the income in 5 years;

Rural Population : providing employment & basic infrastructure;

Youth : energising them through education, skills and jobs;

The Poor and the Underprivileged : strengthening the systems of social

security, health care and affordable housing;

Infrastructure: for efficiency, productivity and quality of life;

Financial Sector : growth & stability by stronger institutions;

Digital Economy : for speed, accountability and transparency;

Public Service : effective governance and efficient service delivery

through people’s participation;

Tax Administration: honouring the honest.

SOURCES AND REFERENCES FOR NASHIK CITY

http://timesofindia.indiatimes.com/city/nashik/nmc-proposes-hike-in-property-water-taxes/articleshow/58837171.cms https://www.e-stampdutyreadyreckoner.com/Stamp-Duty-Calculator.html

http://nashikcorporation.in/public/upload/download/cdp-ch13_Chapter13.pdf https://www.wikiprocedure.com/index.php/Nashik_-_Pay_Property_Tax

Nashik financial CDP 2011 http://realty.economictimes.indiatimes.com/news/regulatory/nashik-municipal-corporation-proposes-hike-in-property-water-taxes/51165719

SOURCE AND REFERNCES FOR COIMBATORE CITY

http://coimbatore.nic.in/lpa/MasterPlan/SpireBW200_1S001.pdf https://www.ccmc.gov.in/ccmc/ coimbatore municiple corporation

coimbatore annual budget reort 2017-18