Gudiyattam Gudiyattam Town - Municipal
Gudiyattam Gudiyattam Town - Municipal
Gudiyattam Gudiyattam Town - Municipal
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Chapter ñ14 Final Report: <strong>Gudiyattam</strong> <strong>Municipal</strong>ity<br />
14.5 BASIC ASSUMPTIONS FOR PROJECTIONS :<br />
The FOP is based on a whole range of assumptions related to income and<br />
expenditure. These are critical to ascertain the investment sustenance and would<br />
also provide a tool to test certain specific policy decisions regarding revenue and<br />
expenditure drivers on the overall <strong>Municipal</strong>ity fiscal situation. This section elucidated<br />
the key assumptions adopted for the FOP scenario.<br />
The growth rates for the various heads of income and expenditure have been<br />
arrived based on the past growth rates and the future estimated population growth.<br />
Improvements to the existing current and arrears collection percentages have been<br />
assumed for the various revenues directly collected by the <strong>Municipal</strong>ity, which<br />
implies that the <strong>Municipal</strong>ity would have to improve its collection mechanism to<br />
sustain full investments.<br />
Given below are the various assumptions forming part of the FOP workings :<br />
14.5.1 Property Tax<br />
The population of Gudiyatham <strong>Municipal</strong>ity is estimated to grow at around 1.20%<br />
p.a. Based on the same Property Tax Revenue are assumed to increase @ 1.20% per<br />
annum. The last revision of Property Tax was carried out on 1-10-98 and it is assumed<br />
that the next revision will be carried out in the current year. It is assumed that there<br />
will be an increase of 15% due to revision in 2008-09 & that revision would be done @<br />
15% every 5 years.<br />
It has also been established as per the Survey in 2002 that around 27% of the<br />
properties are unassessed and further 20-25% of the properties are unassessed.<br />
Considering the above, it is assumed that the same shall be set right and together<br />
these shall contribute to increase in property tax revenue by 10% from next year viz.<br />
2009-10 after GIS mapping.<br />
The Property Tax income is divided between Revenue, Water Supply and Education<br />
Fund in the following ratio:<br />
General 5.750% )<br />
Scavanging 1.250% )<br />
Lighting 3.000% )<br />
Table 14-6: Ratio of Property Tax<br />
Per Annum<br />
- 147 -<br />
Revenue & Capital<br />
Fund<br />
Water Tax 3.750% } Water Supply & Drainage Fund<br />
Drainage 1.250% }<br />
Education 2.500% ]<br />
Total 17.500%<br />
Education<br />
Fund<br />
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