Analysis of tax structure of city Coimbatore and Nasik

URBAN FINANCE
ANALYSIS OF TAX STRUCTURE OF CITY NASIK AND COIMBATORE
&COMPARISION OF THE NASIK AND COIMBATORE CITY
BACHELOR’S OF PLANNING
By
PRAVEEN MUKATI
Scholar No. 141109029
Under the Guidance of
Prof. Rajat Soni Sir
DEPARTMENT OF ARCHITECTURE AND PLANNING
MAULANA AZAD NATIONAL INSTITUTE OF TECHNOLOGY
BHOPAL – 462003 (M.P.), INDIA

COIMBATORE MUNICIPAL BUDGET CITY 2017-
18
INCOME
TYPE OF
REVENUE HEADS PERCENT SUB-HEADS
PERCENT
(%)
TAX
PROPERTY TAX 16%
Property Tax for General Purposes 47.32
Water Supply & Drainage Tax Component 33.33
Education Tax 19.35
OTHER TAXES 5%
Profession Tax 99.43
Pilgrim Tax 0.57
OTHER INCOME 24%
Market Fees 6.86
Fees for Slaughter Houses 0.20
Parking Fees 2.55
Development Charges 0.27
Rent on Lease of Land 0.91
Rent on Shopping Complex 12.41
Rent on Community Hall 0.87
Rent on Buildings 0.49
Road Cut Restoration Charges 6.95
Demolition Charges for Unauthorized
Constructions
0.23
Other Income 1.21
Miscellaneous Recoveries 2.29
Interest on Investments 1.84
Interest from Bank 0.29
Rent on Bunk Stalls 1.42
Garden / Park - Receipts 0.55
Initial Amount for New Water Supply
Connections
0.67
Water Supply / Drainage Connection
Charges
0.05
Metered/Tab Rate Water Charges 15.49
Charges for Water Supply through Lorries 0.02
Septic Tank Cleaning Charges 0.02
Sewerage Connection Charges 0.12
Drainage Maintenance Charges 29.11
Drainage Deposit 2.95
Initial Amount (Omani Bus Stand/ Fruit
Shop
10.18
Income from Amman Unavagam 47 47 80 1.14

96
Cable Laying Fees 0.96
SERVICE CHARGES
AND FEES
5%
Swimming Pool 0.52
Trade License Fees 27.90
Building License Fees 24.95
Encroachment Fees 15.61
Corporation Contribution to Cps 9.91
Fees for Bays and Other Receipts in the
Bus Stand
5.76
Fees on Pay & Use Toilets 6.14
Other Fees 8.44
Copy Application Fees 0.20
Receipts from Hospital & Dispensary 0.35
Receipts from Solid Waste Management 0.22
SALE AND HIRE
CHARGES
0%
Sale of Unserviceable Stock and Stores
100.00
ASSIGNED REVENUE 11% Duty on Transfer of Property 100.00
DEVOLUTION FUND 37% Devolution Fund (SC) 100.00
GRANT
GRANTS
3%
Grant from Government 0.92
I.P.P. (V) – Grant 99.08
CAPITAL FUND
HEADS PERCENT
GRANT AND
CONTRIBUTION
2.68%
Corporation Contribution 45.90
Grant from Government 11.55
Grants from the Government-
(Government of Tamil Nadu)
15.96
Grants from the Government-
(Government of India)
26.59
LOAN 12.75% Loan from TUFIDCO/INDIAN BANK 100.00
EXPENDITURE
HEADS PERCENT SUB-HEADS PERCENT
PERSONAL COST 28%
SALARIES(Pay Including Personal pay, Ex-
Gratia Bonus)
99.07
(II) OTHERS (Travel Expenses, Leave Travel
Concession, Supply of Uniforms,
Conveyance Charges, Training Programme
– Expenses, Staff Welfare Expenses)
0.93
TERMINAL &
RETIREMENT
BENIFIETS
10%
Pension (Superannuation / Retiring /
Invalid Etc.)
73.32
Corporation Contribution 7.12
Death-Cum-Retirement Gratuity 18.33
Special Provident Fund - Cum Gratuity
Scheme – Con
0.20

Group Insurance Scheme -
Management Contribution
0.75
Pension and Leave Salary
Contributions
0.28
OPERATING
EXPENSES
21%
Maintenance of Gardens/Parks 0.09
Maintenance Expenses For Street Lights 10.58
Power Charges - Drainage,Sewerage
System
8.49
Power Charges - Head Works Pumping
Stations
17.40
0.00
Power Charges For Street Lights 5.64
Wages 52.68
Sanitary / Conservancy Expenses 0.94
Expenses On Sanitary Materials (Lime
/ Pleeching Powder/Equip)
2.01
Cost Of Medicines 0.50
Hospital Expenses Other Than
Medicines
1.69
REPAIRS AND
MAINTANENCE
EXPENSES
7%
Light Vehicles – Maintenance 0.04
Repairs & Maintenance - Roads And
Pavements - Black Topped
0.00
Maintenance Of Office Buildings 0.01
Repairs & Maintenance Of Office
Tools And Plants Heavy Vehicles –
Maintenance
1.59
Pavements Concrete
0.00
Pavements – Others
0.02
Repairs & Maintenance - Buildings,
Repairs & Maintenance - Storm Water
Drains
0.00
Open Drain 0.10
Repairs & Maintenance 0.10
Instruments - Plant & Machinery 0.00
Rent For Buildings 0.01
Maintenance Of Kalyana Mandapams
/ Community Halls
0.01
Maintenance Charges - Water Supply
Systems
0.52
Maintenance Charges - Drainage 0.48
Sewerage System Maintenance
Expenses - Elementary Schools
0.07
Maintenance Charges - Twad Board
Metro Water / Water Cess To Tamil
Nadu Pollution Control Board
0.07

Hire Charges For Supply Of Water
Through Private Lorry
1.41
PROGRAM
EXPENSES
1%
Expenses On Opening Ceremonies 0.12
Expenses, Anti - Filaria / Anti Malaria
Operations (Insecticides)
1.23
Election Expenses 86.36
Corporation Contribution To Capital
Works&Jnnurm
0.05
Professional Charges 8.34
Amma Unavgam Expenses 1.03
Fairs & Festivals/Exibition 2.86
ADMINISTARATIVE
EXPENSES
3%
Telephone Charges 4.98
Legal Expenses 10.10
Stationery & Printing Advertisement
Charges
18.04
Other Expenses 6.84
Computer Operational Expenses 11.64
Books & Periodicals And Magazines 0.87
Postage And Telegrams And Fax
Charges
0.07
Electricity Consumption Charges for
Office Building Contributions
(Tnius/Ailb Training Centre)
0.05
Sitting Fees/Honorarium for the
Councilors Council Department -
Travel Expenses On Hospitality /
Entertainment
47.42
FINANCE
EXPENSES
0%
Bank Charges 0.13
Interest on Loans 90.22
Audit Fees 9.65
CAPITAL WORKS 29%
Buildings 3.93
Bridges 0.00
Open Drains 0.22
Furniture 0.61
Electrical Installations - Lamps - Light
Fittings
0.16
Plant And Machinery 0.00

Roads And Pavements - Concrete -
Gross Block
2.60
Roads And Pavements - Block Topped
- Gross Block
3.36
Roads And Pavements - Others - Gross
Block
0.22
Zone Development 1.03
Mayor Fund Councilors Fund 4.31
Head Works - Oht Works 70.15
Drainage and Sewerage 13.33
Ground Water Wells /Bore wells 1.06
LOANS 0%
Loan from TUFIDCO 70.03
Loan from TNUDF 29.97

ABSTRACT OF GENERAL FUND, WATER SUPPLY & DRAINAGE AND ELEMENTARY
EDUCATION FUNDS
Details General
Fund
Water Supply &
Drainage Fund
Elementary Education
Fund
Revenue Receipts 46,490.84 16,483.67 3,296.68
Capital Receipts 38,456.27 2,515.00 0.00
Total 84,947.11 18,998.67 3,296.68
Revenue Expenditure 33,468.79 11,043.96 814.42
Capital Expenditure 51,208.46 7,795.42 1,607.65
Total 84,677.25 18,839.38 2,422.07
SURPLUS 159.29 874.61

ABSTRACT OF GENERAL FUND
` in lakhs
Particulars
Actuals (2015-16) Budget Estimate
(2016-17)
Revised
Estimate
(2016-17)
Receipts
(Revenue)
Tax Revenue 8,877.96 10,347.29 10,837.15
Assigned Revenues & Compensations 3,914.91 4,600.00 4,052.12
Rental Income from Municipal 2,661.70 2,799.08 2,540.65
Properties
Fees & User Charges 3,097.94 2,695.01 2,825.79
Sale & Hire Charges 122.16 20.00 18.23
Revenue Grants, Contribution and 12,570.93 14,450.00 14,550.57
Subsidies
Income from Investments 7,251.02 1,075.00 239.24
Interest Earned 281.40 50.00 67.67
Other Income 7,798.28 9,584.17 6,134.59
Grants, Contribution for specific 1,190.29 760.00 653.50
purposes
Total 47,766.59 46,380.55 41,919.51
Receipts
(Capital)
Grants, Contribution for specific 27,757.85 24,517.50 18,850.00
purposes
Secured Loans 0.00 5,416.00 2,900.00
Total 27,757.85 29,933.50 21,750.00
Total Receipts 75,524.44 76,314.05 63,669.51
Payments
(Revenue)
Establishment Expenses 10,858.04 14,948.14 15,121.45
Administrative Expenses 1,417.14 2,351.00 2,060.65
Operations & Maintenance 12,481.50 12,408.00 13,392.66
Interest & Finance Charges 346.00 322.09 443.92
Programme Expenses 5.21 221.00 43.00
Grants, Contribution and Subsidies 2,672.11 831.00 1,199.00
Other Liabilities 25,882.67 20,204.50 18,903.54
Total 53,662.67 51,285.73 51,164.22
Payments
(Capital)
Repayment of Secured Loans 204.37 1,715.44 820.78
Fixed Assets 30,156.04 31,587.16 20,539.07
Total 30,360.41 33,302.60 21,359.85
Total Payments 84,023.08 84,588.33 72,524.07
Surplus/(Deficit) (8,498.64) (8,274.28) (8,854.56)

NASIK MUNICIAPL BUDGET REPORT AND TAX STRUCTURE
REVENUE INCOME
TAXES DESCRIPTION Sub- categorization Of Taxes Percentage Share
A . DIRECT TAX- REVENUE INCOME
Income Tax 15
Capital Gains tax 5%
Securities Transaction
Tax 0.03%
Corporate Tax 30%
Minimum Alternative Tax 22.50%
Dividend distribution Tax 15%
Banking Cash Transaction Tax 0.50%
Wealth Tax 12 % is applicable on individual earning of 1 crore and above
On net wealth exceeding 30 Lakhs 1%
Property Tax
Residential house (self-occupied or let-
out) 16%
Water Tax 6%
INDIRECT TAX- OWN SOURCES
Octroi Tax 63.80%
Service Tax 14.50%
Sales Tax & VAT
The government split all the good into 3 categories called
schedules.
Schedule 3 1%
Schedule 2 5%
Schedule 1 2%
Others 15%
NON TAX SOURCES
Toll tax & Road Tax 4%
Professional Tax 2%
Entry tax 7.50%
Entertainment Tax 7%
Stamp duty/Registration fee 2%
Local body Tax 14%
Education Cess Education cess(EC) 3%
Secondary and Higher Education cess
(SHEC) 4%
Swach Bharat Cess 0.50%
Infrastructure Cess** 2%
2.50%
6%
Hoarding Tax 23%
B. CAPITAL INCOME
Loans 28.50%
Grants 23.40%
NURM 31%

Others 17.10%
EXPENDITURE
C. REVENUE EXPENDITURE
Establishment
Expenditure 53.60%
Operation and Maintainance expenditure 20.10%
Interest on loan 26.30%
Total Revenue
Expenditure 48434.94
D. CAPITAL EXPENDITURE
Capital Expenditure
Principle of Loans taken All figures in Lakhs) 20417.4 (
Total capital Expenditure 0
All figures in Lakhs 20417.4
**Infrastructure cess is applicable on petrol/LPG/CNG-driven motor vehicles of length not exceeding 4 meters and engine c
Cess on diesel motor vehicles of length not exceeding 4 meters and engine capacity not exceeding
1500cc
Cess is applicable on big sedans and SUVs.
SUMMARY OF MUNICIPAL FUND
YEAR 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 200
Total Revenue income 25066.19 29526.25 32218.78 32444.06 36824.36 41359.54 468
Total Capital income 10825.25 5685.64 1396.15 1376.56 1917.87 8651.3 26
Total revenue Expenditure 17009.28 18653.26 19916.44 20663.08 21052.26 20496.4 231
Total Capital Expenditure 18355.59 17343.48 13639.77 11525.05 14540.66 24593.12 562

COIMBATORE BUDGET REPORT During the financial year 2017-
18 based on the guidelines of Swachh Bharat Mission and Cleanup Tamil Nadu
Mission. Over last few months reserve sites worth more than 200 crores have
been retrieved by Coimbatore City Municipal Corporation. During this
financial year, the corporation’s unwavering efforts for the removal of
encroachments, retrieval of various reserve sites of the corporation will
continue and the sites will be developed with the support and co-operation
from the public.
This budget has been designed with a vision – the vision of the city that an
average citizen would dream of - the vision that every student, professional,
elderly or house wife would dream of! Dreams have now been translated into
vision, and in the upcoming year ,the vision would translate into reality,
making Coimbatore one of the best cities in the country to lead a happy and a
healthy life.
budget which includes Smart Waste Management, Installation of IOT devices,
Smart Citizen App, Restoration and Rejuvenation of Water Bodies, Installation
of Solar Energy Lamps, Road Development, Transport enhancement facilities,
Improvement of green space, Development of multi level car park facilities,
Improving the corporation Schools, Improvement of Drinking Water
Distribution, Provision of Under Ground Sewage Schemes. Overall the budget
for 2017-18 will be a scalable budget covering all the essential components in
the urban development spectrum.
Revenue Generation
Infrastructure- The main objective of the Business plan is to generate
revenue through the non traditional sources with minimum investments and
adopting the policies and strategies.
-scope to control expenditure in Solid Waste Management sector and Street
Lighting sector etc By introducing the private participation in all sectors will
result expenditure reduction. Regarding street lighting, the analysis will be
towards various options to maintain new technology of street lighting with the
help of private participation.
Assets The major assets for the municipalities are the immovable assets. This
is one more potential area to develop the asset values and increase the
municipal revenue. The analysis includes find out the various options to make
use of vacant lands by BOT basis. Revising rents for the remunerative assets
up to market values.
-In street lighting sector, also there is scope to minimize the expenditure
towards power consumption and operation & maintenance. Related to street
lighting the data has been collected as follows:
(i) Number and types of street lighting and its operation and maintenance

(ii) Expenditure towards salaries and Power charges
Energy Saving. A significant number of municipalities in Tamil Nadu rely on
motive power for conveying water, either through significantly long distances
(typically source to distribution point) or to meet contour gradient
requirements within the distribution system. Pump Stations or Booster
Stations achieve this objective by providing the necessary motive power to
increasing the energy of the fluid to ensure water supply and distribution at
required pressure and quantity.
Staff Reduction and Privatization. There is 2,137 permanent staff excluding
consolidated pay members, working as sanitary workers. The average salary
for each sanitary worker is around Rs. 5,500 per month. It is inferred from the
pay roll that, about around 10 percent of workers are liable to retire by 2015.
So, it would be a viable option that, the Corporation start privatisation efforts
by 2007 and would completely privatize their collection, transportation and
disposal operations by 2015. The remaining staffs could be trained for other
jobs and transferred to the departments where there is a shortage of staffs
Privatization Option. Government of Tamil Nadu has initiated privatization
of street lighting in most of the ULBs in Tamil Nadu. Private contractors have
to replace all streetlights by energy efficient lights, installation of power saver
devises at necessary location and maintains the same. The replacement of
existing lights proposed to replace in a phased manner for next two years
(2006 & 2007). Separate cash flow for street lighting was prepared to
ascertain the savings due to the replacement of new energy efficient lights.
Solid Waste Management Compare to all sections public health division will
maintain maximum number of workers and more number of vehicles. The
vehicles will exhibits more operation and maintain cost. With respect to solid
waste management, the analysis is focused on comparison of manpower with
municipal staff to the private operator.
Parking Fees Land-use and economic activity drives the parking demand in
Coimbatore City attracts significant business and personal two-wheeler traffic
which puts up specific parking requirement. Private vehicles can be seen
parked haphazardly along the roadside. Based on the field visit following
locations were identified for on street parking of two wheelers. For estimating
the parking fee, it was assumed that 40 percent of the total vehicle will be
parked less than or equal to one hour and 60 percent of the total vehicle will
be parked more than one hour. Vehicles that are parked more than an hour
can be charged four rupees per vehicle and for other vehicles two rupees can
be charged. An annual vehicle increment of two percent has been assumed to
calculate the future revenue generation

Advertisement Fee Lease amount collected as fixed by the council for
advertising on lampposts and hoardings erected within the Corporation limit
are accounted in advertisement fee. In case of
Coimbatore Corporation average revenue generated through the
advertisement fee is very low (Rs. 6.24 lakh). Hence, there is a scope to
increase the advertisement fee by extending tax /fee coverage net. Only 25
percent of the advertisement fee raised will be transferred to respective Urban
Local Bodies balance transferred to the State government. The total
advertisement fee is Rs. 25.99 lakh per annum, with an annual increment of 2
percent on total advertise fee assumed, to accommodate increase in no of
advertisement hoardings/ boards.
Conservancy Fee Conservancy establishment cost is work out to 52 percent of
total establishment cost of Coimbatore Corporation, to meet at least a part of
collection expenses conservancy fee introduced. It is proposed to cover at
least 50 percent of the residential properties and 100 percent of non domestic
properties like hotels, lodges, commercial establishments and etc, For
Residential properties Rs. 15 per month and non domestic properties Rs. 50
per month have to be charged. Upward revision of 15 percent every 3 years
once from 2006-07 proposed.

ABOUT COIMBATORE AND NASIK
Coimbatore, also known as Kovai is a major city in the Indian state of Tamil
Nadu. Located on the banks of the Noyyal River surrounded by the Western
Ghats, it is the second largest city in the state after Chennai and 16th
largest urban agglomeration in India. It is the largest city in the Kongunadu
region). It is administered by the Coimbatore Municipal Corporation and is the
administrative capital of Coimbatore district. It is one of the fastest
growing tier-II cities in India and a major hub for textiles, industries,
commerce, education, information technology, healthcare, poultry and
manufacturing in South India. It is often referred to as the
"Manchester of South India" due to its cotton production and textile
industries. Coimbatore is also referred to as the "Pump City" and it supplies
nearly half of India's requirements of motors and pumps. The city is one of the
largest exporters of jewellery, wet grinders, poultry and auto
components with "Coimbatore Wet Grinder" and "Kovai Cora Cotton"
recognised as Geographical Indications by the Government of India.
Coimbatore has a population of 1,601,438.[1] As per the 2011 census based on
pre-expansion city limits, Coimbatore had a population of 1,050,721 with a sex
ratio of 997 females for every 1,000 males, much above the national average of
929.[46] It is the second largest city in the state after capital Chennai[47] and the
sixteenth largest urban agglomeration in India.
Nashik lies in the northern part of Maharashtra state at 700 m
(2,300 ft)[4] from the mean sea level. The river Godavarioriginates from the
Brahmagiri Mountain, Trimbakeshwar about 24 km (15 mi) from Nashik and
flows through the old residential settlement, now in the central part of the
city. Due to high pollution created by factories in proximity of the city the river
was dying at an alarming rate. It has since been successfully cleaned.[5] Other
than Godavari, important rivers like Vaitarana, Bhima, Girana, Kashyapi and
Darana flow across Nashik
Nashik is the fourth largest city in Maharashtra in terms of population.
According to the Census of India, 2011, Nashik had a population of 1,486,053.
Males constitute 782,517 of the population and females 703,536. Metropolitan
Nashik population was 1,561,809 in which 821,921 were males and 739,888
were females. Nashik city had an average literacy rate of 89.85%: male literacy
was 93.40%, and female literacy was 85.92%.[15]
The sex ratio is 894 per 1000 males for Nashik city. Child sex ratio is 865 girls
per 1000 boys. In Nashik, 11.42% of the population is under 6 years of
age.[16] In census year 2001 the Nashik Urban Agglomeration had a population
of 11,52,326. Thus it was the fourth largest urban area of Maharashtra State
after Mumbai, Pune and Nagpur. The projected population of Nashik urban
agglomeration (which includes abutting urban areas like Deolali) as on 11
November 2012 is 15,62,769.

COMPARISION
OF NASIK AND
COIMBATORE
ON THE BASIC OF POPULATION
CITY NASIK COIMBATORE
REVENUE INCOME
TAXES DESCRIPTION Sub- categorization Of Taxes Percentage Share percentage differe
Income Tax 15% 26% 11%
Capital Gains tax 5% 3.75% 1.25%
Securities Transaction Tax 0.03% 1.20% 1.17%
Corporate Tax 30% 26% -4%
Minimum Alternative Tax 22.50% 24.25% 1.75%
Dividend distribution Tax 15% 12% -3%
Banking Cash Transaction Tax 0.50% 0.75% 0.25%
Wealth Tax 1% 4.50% 3.50%
Property Tax
Residential house (self-occupied or
let-out) 16% 16% 2%
Property Tax for General Purposes
(coimbatore)
47.32
15% -32.32%
Water Tax 6% 33.33% 27.33%
Octroi Tax 63.80% 52.16% -11.64%
Service Tax 14.50% 4.92% -9.58%
Sales Tax & VAT
The government split all the good into 3 categories
called schedules. 0.90% 0.09%
Schedule 3 1% 1%
Schedule 2 5% 5%
Schedule 1 2% 2%
Others 15% 15%
NON TAX SOURCES
Toll tax & Road Tax 4% 15% 11%
Professional Tax 2% 19.28 17.28%
Entry tax 7.50% 12.52% 5.02%
Entertainment Tax 7% 4.48% -2.25%
Stamp duty/Registration fee 2% 1.20% -0.08%
Local body Tax 14% 8.25% -5.75%
Education Cess Education cess(EC) 3% 1.50% -1.50%
Secondary and Higher Education cess
(SHEC) 4% 3.70% -0.03%
Swach Bharat Cess 0.50% 1.20% 0.70%
Infrastructure Cess** 2% 5% 3%
2.50% 0 -2.50%
6% 0 -6%

Hoarding Tax 23% 25% 2%
B. CAPITAL INCOME
Grants 23.40% 42.51% 19.11%
assinged revenuue 0% 11% 11%
devolution fund 0% 37% 37%
MNREGA &NRULM 31% 36.59 5.59%
Others 17.10% 20.90% 3.80%
EXPENDITURE 53.60% 33.38% -20.22%
C. REVENUE EXPENDITURE 20.10% 38.12% 18.10%
Establishment Expenditure 0.00% 3% 3%
Operation and Maintainance expenditure 0.00% 0% 0%
administrative expenses 0.00% 0.64% 0.64%
finance expenses 26.30% 12.75% -13.55%
Programme Expenses rs. 48434.94 33468 48434.94
personal cost 20.75% 28% 7.25%
terminal and retirement benefit 11% 10% -1%
Interest on loan 0% 0% 0%
Total Revenue Expenditure rs. 48500 33468.39 -10031.61
D. CAPITAL EXPENDITURE
Capital Expenditure
Principle of Loans taken
Total capital Expenditure rs 20417.4 51208.46 30791.46
SURPLUS 122.4 269.69 147.29

COMPARISON OF CITY BUDGETS BETWEEN TIER – 1 AND TIER – 2 CITIES
SUBMITTED BY –
Srishti Bhadauria – 141109026
Apoorva Singh – 141109027
Anusha Fatima – 141109028
Praveen Mukhati – 141109029
Aditya Kushwaha – 141109030
Hemant Bunker - 141109031

ESTIMATED PLAN INVESTMENT ALLOCATION
11 FIVE YEAR PLAN

 What is Public Finance?
According to Dalton,’ Public finance is the branch of knowledge which is concerned with
the income and expenditure of public authorities and with the adjustment of one to

another.’ It deals with the study of revenue and expenditure of the government at the
centre, state and local bodies.
The public authorities have to perform various functions such as maintenance of law an
order, provision of defence, production for bringing in economic development. The
performance of these functions require large amount of funds which is raised through
taxes, fees, fines, commercial revenues and loans.
Taxation
The most important source of revenue of the government is taxes. The act of levying
taxes is called taxation. A tax is a compulsory charge or payment imposed by
government on individuals or corporations. The persons who are taxed have to pay the
taxes irrespective of any corresponding return from the goods or services by the
government. The taxes may be imposed on the income and wealth of persons or
corporations and the rate of taxes may vary.
Taxes can be classified into various types on the basis of form,nature,aim and method
of taxation. the most common and traditional classification is to classify into direct
and indirect taxes.
Objectives of Taxes
 Raising Revenue
 Regulation of Consumption and Production
 Encouraging Domestic Industries
 Stimulating Investment
 Reducing Income Inequalities
 Promoting Economic Growth
 Development of Backward Regions
 Ensuring Price Stability
BASIS OF COMPARISON OF CITY BUDGET –
 Population: This is the factor. RBI classifies cities based on population, number of
electoral constituencies into six tiers. Classification of Indian cities . This was
based on 2001 Census.

 The cities which come under tier – 1 cities are –
 The cities which come under tier – 2 cities are –
JAIPUR MADURAI GUWAHATI AMRITSAR
HEADS UNDER WHICH COMPARISON
HAS BEEN DONE FOR TIER – 1 CITIES
REVENUE INCOME
TAXES DESCRIPTION
Income Tax
Capital Gains tax
Corporate Tax
Wealth Tax
Property Tax
Water Tax
Octroi Tax
Service Tax
HYDERABAD BENGALURU MUMBAI CHENNAI KOLKATA
HEADS UNDER WHICH COMPARISON HAS BEEN
DONE FOR TIER – 2 CITIES
PROPERTY TAX
OTHER TAXES
OTHER INCOME
SERVICE CHARGES AND FEES
SALE AND HIRE CHARGES
ASSIGNED REVENUE
DEVOLUTION FUND
GRANTS
GRANT AND CONTRIBUTION
LOAN
PERSONAL COST
TERMINAL & RETIREMENT
BENIFIETS
OPERATING EXPENSES
REPAIRS AND MAINTANENCE
EXPENSES

Sales Tax & VAT
NON TAX SOURCES
Toll tax & Road Tax
Professional Tax
Entertainment Tax
Stamp duty/Registration fee
Local body Tax
Education Cess
Swach Bharat Cess
Infrastructure Cess**
Hoarding Tax
B. CAPITAL INCOME
Grants
NURM
Others
EXPENDITURE
C. REVENUE EXPENDITURE
Establishment Expenditure
Operation and Maintainance expenditure
Programme Expenses
Interest on loan
COMPARISON ON THE BASIS OF POPULATION –
Population (Tier-I Cities)
HYDERABAD 8.7 million
BENGALURU 10.1 million
MUMBAI 21.3 million
CHENNAI 10.5 million
KOLKATA 4.6 million
Population (Tier-II Cities)
JAIPUR 3.5 million
MADURAI 2.7 million
GUWAHATI 1.91 million
AMRITSAR 2.3 million
TIER I CITIES
BENGALURU vs CHENNAI

1. Property tax and capital gain taxes in Chennai are higher than
Bangaluru.
2. No change in the rate of surcharge either for the corporates or the
individuals, HUFs,
firms etc.
3. There is a huge difference in the indirect taxation between the
two cities along with the greater variations under the heads such
as – non- tax sources and capital income.
4. The graph shows the differences between the Direct tax revenue
income.
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
A . DIRECT
TAX-
REVENUE
INCOME
Income
Tax
Capital
Gains tax
Corporate
Tax
Wealth
Tax
Property
Tax
Water Tax
BENGALURU
CHENNAI
3.80% 6% 2% 1% 4.40% 0%
1.5
54%
11%0.50%
99.43%
1.80% 0%
8%
0.59% 0
33% 5.40%
Non - tax resorces
BENGALURU CHENNAI

TIER II CITIES
JAIPUR VS MADHURAI
The graph shows the comparison of different types of taxes in the two
cities .
There is no significant variation in the scenario of both the cities .
The graph shows the comparison of different types of Expenditures in
the two cities .
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Establishment
Expenditure
Operation and
Maintainance
expenditure
Programme
Expenses
Interest on loan
BENGALURU
CHENNAI
0
5
10
15
20
25
30
35
40
JAIPUR
MADURAI

TIER II CITIES
 The graph shows the comparison of different types of taxes in
the two cities .
There is no significant variation in the scenario of both the cities
except there is variation in the percentages of Other incomes.
0
10
20
30
40
50
60
70
JAIPUR
MADURAI
GUWAHATI vs AMRITSAR
0
5
10
15
20
25
30
35
40
45
50
GUWAHATI
AMRITSAR

 The graph shows the comparison of different types of
Expenditures in the two cities .
 There is no significant variation in the scenario of both the cities
.
 The graph shows the comparison of different types of capital
incomes in the two cities .
 There is a great variation in the percentage between the two
cities and more than 30% increment is addressed in case of
Amritsar as compared to Guwahati.
 There is 30 Lacs difference in the population as well.
0
5
10
15
20
25
30
35
GUWAHATI
AMRITSAR

 COMPARISON ON THE BASIS OF DIRECTIONS –
 TIER I CIITIES
CHENNAI vs HYDERABAD
 Water taxation is greater in Chennai whereas Property taxes
are levied double in Hyderabad.
 There is not much variation in the capital gains and wealth
taxes.
 There is a difference of 7.5 % in the Income tax levying and is
higher In Chennai.
 The graph shows the comparison of different types of Taxes in
the two cities .

 The graph shows the comparison of different types of Non- tax
variation in the two cities .
BENGALURU vs CHENNAI
1. Water taxation is greater in Bengaluru whereas Property taxes
are levied double in Chennai.
11%
2.50%
0 0
27%
33.33%
3.50% 3.50%
1.50%
0
46%
0%
Income Tax Capital Gains tax Corporate Tax Wealth Tax Property Tax Water Tax
TAXES VARIATIONS
CHENNAI HYDERABAD
3.80% 6% 2% 1% 4.40% 0%
1.5
54%
11%
0.50%
99.43%
1.80% 0% 8% 0.59% 0
33%
5.40%
NON - Tax sources
BENGALURU CHENNAI

2. There is not much variation in the capital gains and wealth
taxes.
3. There is a difference of 7.5 % in the Income tax levying and is
higher In Bengaluru.
 The graph shows the comparison of different types of Taxes in
the two cities .

15%
0 0
3.30%
10%
3.65%
11%
2.50%
0 0
27%
33.33%
Taxes
BENGALURU CHENNAI

MUMBAI vs KOLKATA
 Water taxation is greater in Mumbai whereas Property taxes
are levied double in Kolkata.
 There is not much variation in the capital gains and wealth
taxes
 There is a difference of 7.5 % in the Income tax levying and is
higher In Mumbai.
the two cities .
3.80%
6% 2% 1% 4.40% 0%
1.5
54%
11%
0.50%
99.43%
1.80% 0%
8%
0.59% 0
33%
5.40%
NON - TAX SOURCES
BENGALURU CHENNAI

TIER II CITIES
11%
2.50%
0 0
27%
33.33%
3.50% 3.50%
1.50% 0
46%
0%
TAXES VARIATIONS
3.80% 6% 2% 1% 4.40% 0%
1.5
54%
11%
0.50%
99.43%
1.80% 0%
8%
0.59% 0
33%
5.40%
NON - Tax sources

 JAIPUR vs GUWAHATI
1. There is no significant differences between the two cities and
the kinds of taxes levied are similar in percentages.
the two cities .
 The graph shows the comparison of different types of
Expenditures done in the two cities .
 Only capital works show a significant higher % in case of Jaipur
since it has a larger population share in comparison to Guwahati
and also has a developed and compact pattern of livelihood.
0
5
10
15
20
25
30
35
40
JAIPUR
GUWAHATI

 There are no significant variations in the pattern of investment
and expenditure done in the tier – 2 cities.
 MADURAI vs AMRITSAR
1. There are no significant differences between the two cities and
the kinds of taxes levied are similar in percentages.
the two cities .
24 21
35.5
23
0
12
22
32
23
19
0
33
0 0
19
0
EXPENDITURE
JAIPUR GUWAHATI

 The graph shows the comparison of different types of
Expenditures done in the two cities .
 There are no significant variations in the pattern of investment
and expenditure done in the tier – 2 cities.
CONCLUSION:
SCENARIO 2016-17
0
5
10
15
20
25
30
35
40
OTHER TAXES OTHER
INCOME
SERVICE
CHARGES AND
FEES
SALE AND
HIRE
CHARGES
ASSIGNED
REVENUE
DEVOLUTION
FUND
GRANTS
24
21
35.5
23
0
12
22
32
23
19
0
33
0 0
19
0
EXPENDITURE

 In the last two and half years administration has moved from
discretionary, favouritism based to system and transparency based
 Inflation brought under control. CPI-based inflation declined from 6% in
July 2016 to 3.4% in December, 2016
 Economy has moved on a high growth path. India’s Current Account Deficit
declined from about 1% of GDP last year to 0.3% of GDP in the first half of
2016-17. FDI grew 36% in H1 2016-17 over H1 2015-16, despite 5%
reduction in global FDI inflows. Foreign exchange reserves have reached
361 billion US Dollars as on 20th January, 2017
 War against black money launched
 Government continued on path of fiscal consolidation, without
compromising on public investment.
 The Indian economy has been robust to mild shocks and IMF forecasts,
 India to be one of the fastest growing major economies in 2017
CHALLENGES IN 2017-18
 World economy faces considerable uncertainty, in the aftermath of major
economic and political developments during the last year
 The US Federal Reserve's , intention to increase policy rates in 2017, may
lead to lower capital inflows and higher outflows from the emerging
economies
 Uncertainty around commodity prices, especially that of crude oil, has
implications for the fiscal situation of emerging economies
 Signs of retreat from globalisation of goods, services and people, as
pressures for protectionism are building up
 TRANSFORMATIONAL REFORMS IN LAST YEAR
 Passage of the Constitution Amendment Bill for GST and the progress for
its introduction
 Demonetisation of high denomination bank notes
 Enactment of the Insolvency and Bankruptcy Code; amendment to the RBI
Act for inflation targeting; enactment of the Aadhar bill for disbursement
of financial subsidies and benefits
 Budget 2017-18 contains 3 major reforms. First, presentation of Budget
advanced to 1st February to enable the Ministries to operationalise all
activities from the commencement of the financial year. Second, merger
of Railways Budget with General Budget to bring Railways to the centre
stage of Government’s Fiscal Policy and Third, removal of plan and nonplan

classification of expenditure to facilitate a holistic view of allocations
for sectors and ministries
 DEMONITISATION
 Bold and decisive measure to curb tax evasion and parallel economy
 Government’s resolve to eliminate corruption, black money, counterfeit
currency and terror funding
 Drop in economic activity, if any, to be temporary
 Generate long term benefits including reduced corruption, greater
digitisation, increased flow of financial savings and greater formalisation
of the economy
 Pace of remonetisation has picked up and will soon reach comfortable
levels
 The surplus liquidity in the banking system will lower borrowing costs and
increase the access to credit
 Announcements made by the Honourable Prime Minister on 31st Dec,
2016 focusing on housing for the poor; relief to farmers; credit support to
MSMEs; encouragement to digital transactions; assistance to pregnant
women and senior citizens; and priority to dalits, tribals, backward classes
and women under the Mudra Yojana, address key concerns of our
economy
 ROADMAP & PRIORITIES
 Agenda for 2017-18 is : “Transform, Energise and Clean India” – TEC India
 TEC India seeks to
 Transform the quality of governance and quality of life of our people;
 Energise various sections of society, especially the youth and the
vulnerable, and enable them to unleash their true potential; and
 Clean the country from the evils of corruption, black money and
non-transparent political funding
 Ten distinct themes to foster this broad agenda:
 Farmers : committed to double the income in 5 years;
 Rural Population : providing employment & basic infrastructure;
 Youth : energising them through education, skills and jobs;
 The Poor and the Underprivileged : strengthening the systems of social
security, health care and affordable housing;
 Infrastructure: for efficiency, productivity and quality of life;

 Financial Sector : growth & stability by stronger institutions;
 Digital Economy : for speed, accountability and transparency;
 Public Service : effective governance and efficient service delivery
through people’s participation;
 Tax Administration: honouring the honest.
SOURCES AND REFERENCES FOR NASHIK
CITY
http://timesofindia.indiatimes.com/city/nashik/nmc-proposes-hike-in-property-water-taxes/articleshow/58837
https://www.e-stampdutyreadyreckoner.com/Stamp-Duty-Calculator.html
http://nashikcorporation.in/public/upload/download/cdp-ch13_Chapter13.pdf
https://www.wikiprocedure.com/index.php/Nashik_-_Pay_Property_Tax
Nashik financial CDP 2011
http://realty.economictimes.indiatimes.com/news/regulatory/nashik-municipal-corporation-proposes-hike-in-p
SOURCE AND REFERNCES FOR
COIMBATORE CITY
http://coimbatore.nic.in/lpa/MasterPlan/SpireBW200_1S001.pdf
https://www.ccmc.gov.in/ccmc/ coimbatore municiple corporation
coimbatore annual budget reort 2017-18

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