​​​​​​​​Urban Finance

The sources of revenue for Urban Local Bodies include taxes, shared revenue, charges and fees, loans and grants from the Central and State Governments.The major sources of income to the ULBs are:

  • Tax and non-Tax items of Revenue (Self-Generated Income)
  • Devolution from the State Government (SFC Grant)
  • Central Finance Commission Grant (13th CFC Grant)
  • Specific grants sanctioned by GOI and State Government
  • Loans from funding agencies and Government
Financial Resources

The financial resources for 9 Corporations and 125 Municipalities during the year 2012-13 is ₹4286.00 crore. This includes the following sources.

Untitled31.png

State Finance Commission

In accordance with Article 243 Y of the Indian Constitution, the Finance Commission constituted shall also review the financial position of the Municipalities and make recommendations.

The recommendations of the Fourth State Finance Commission have covered the period 2012-2017. Based on the recommendations of the Fourth State Finance Commission, the vertical sharing ratio of the funds from State’s own tax revenue (SOTR) between rural and urban local bodies has been fixed as 58:42.

An amount of ₹2441.95 crore has been allocated in the budget estimate for the year 2013-14 to all Corporations and Municipalities.

Recommendation of 13th Central Finance Commission

As per the recommendations of the 13th Finance Commission, the Union Government has sanctioned grants to all Corporations and Municipalities in the State of Tamil Nadu for the period from 2010-11 to 2014-15. The total allocation of grants to Municipalities and Corporations are as follows:-

Untitled32.png

An amount of ₹219.37 crore was released to all Corporations and Municipalities during the year 2012-13 and ₹429.13 crore has been allocated in the budget estimate for the year 2013-14.