FINANCING THE SOCIOECONOMIC INFRASTRUCTURE FACILITIES IN MUNICIPAL CORPORATION: A CASE STUDY OF BHIWANDI- NIZAMPUR MUNICIPAL CORPORATION, INDIA

Abstract

Every municipal corporation must increase revenue and capital receipts and reduce its expenditure. But in Bhiwandi-Nizampur Municipal Corporation, the revenue receipts are decreasing due to local body tax, grants, rent from other fixed assets. Revenue expenditure is increasing because of salary and allowances to staff, administrative expenses, communication expenses, fees, advertising, repair of roads, computer equipment’s, furniture, and transfer from schemes. Capital receipts have decreased due to grants contribution from state and central government, loans, and other liabilities. The capital expenditure is increasing due to contribution of municipal buildings, electrification and street lighting, vehicles. Municipal corporation must find alternative sources of revenue. It must increase the entertainment tax, user fees of various services and rent of municipal buildings and properties. It must reduce expenditure on vehicle allowances and maintenance. The municipal corporation must increase capital expenditure on information technology, roads, street light, water supply, and sanitation. Public-private partnership is important to raise capital to finance various socioeconomic infrastructure projects. State government must invest in various projects to improve standard of living of people in corporation.