Question
Discuss the sources of revenue and resource mobilisation avenues of
urban local bodies.
Answer :
Word Count : 519
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Skip in 10
Urban Local Bodies (ULBs) are the third tier of government responsible for providing essential civic services such as water supply, sanitation, waste management, roads, street lighting, public health, and urban planning. To perform these functions effectively, they require adequate financial resources. The financial strength of ULBs depends on a combination of tax revenues, non-tax revenues, grants, loans, and innovative resource mobilisation mechanisms. The most important source of revenue for ULBs is tax revenue. Property tax is the principal and most stable source of municipal income. It is levied on residential, commercial, and industrial properties based on their assessed value or annual rental value. Other municipal taxes include advertisement tax, entertainment tax where applicable, profession tax in some states, and taxes on vacant land. Although the
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