Arani Town - Municipal

Chapter - 9 Final Report: Arani Municipality
9.3.3 Assigned Revenues
This item head comprises of income from Government of Tamil Nadu (GoTN) / State
transfers of municipal income collected by the state line department. Transfers are in
the form of municipalityís share of taxes levied and collected by GoTN from
establishments / operations within municipal limits.
Surcharge on transfer of immovable properties and entertainment tax are the major
items on which these revenues are realized by municipality.
This income varies from year to year. The items under this category accounted for
nearly 13.5% of the total municipal revenue. The assigned revenue for the last 6 years
is as below:
Table 9-7: Assigned Revenue ñ Growth & % of Total Income (Rs. in lacs)
S.NO Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Assigned Revenue
Duty on transfer of
property
22.62 32.36 50.93 27.78 32.36 -
Entertainment Tax 8.88 12.00 10.89 15.77 12.00 -
Total 31.50 44.36 61.82 43.55 44.36 -
2 % of Total Income - 28.99% 28.24% (41.95%) 1.83% -
3 % Growth 11.88% 16.90% 17.99% 12.33% 10.34% -
It may be observed that Assigned Revenue has increased @ 4.5% p.a. over the
years. In case of entertainment tax, the Commercial Department collects
entertainment tax from cinema halls functioning within municipal limit. The CT
Department transfers 90% of total tax collection to municipality and retains 10%
towards management charges. The Arani Municipality has 7 theatres and the
income from entertainment tax has reduced over the years.
9.3.4 Revenue Devolution Funds in aid of revenue expenditure
Grants in aid of revenue expenditure got boosted up following the 74th CAA and
the same is reflected in the Municipality Revenue. The item mainly comprises
revenue grants and compensations from State Government under various heads.
The regular grants include the SFC grants and others include aid grants, grants for
services like roads, buildings, maternity and child welfare, public health, contributions
for elementary and secondary schools and etc. Grants which are for specific
purposes are adhoc in nature.
This income varies from year to year. The items under this category accounted for
nearly 15% of the total municipal revenue. The assigned revenue for the last 6 years is
as below:
Table 9-8: Devolution Fund ñ Growth & % of Total Income (Rs. in lacs)
S.NO Particulars 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Devolution Fund 29.76 18.22 55.49 63.90 50.27 56.68
Total 29.76 18.22 55.49 63.90 50.27 56.68
2 % of Total Income 11.23% 6.94% 16.15% 18.10% 11.72% 14.91%
3 % Growth - (63.34%) 67.17% 13.16% (27.11%) 11.31%
. - 56 -
Voyants Solutions Private Limited