City Corporate & Business Plan - Municipal

Chapter ñ 9 Final Report: Ambur Municipality
9 MUNIICIIPAL FIINANCE
9.1 INTRODUCTION TO URBAN LOCAL BODY FINANCIALS:
Ambur Municipality maintains a municipal fund for managing the finances of the
Municipality. The accounts of the municipal fund were maintained on cash based
single entry system till the year 1999-2000. From 1.4.2000 onwards, accrual based
double entry book keeping system was implemented. The Municipality maintains
accounts separately for General Fund, Water Supply and Sewerage Fund and
Education Fund.
This Section contains a description of the municipal finances, the sources and uses
of funds, and an assessment of municipal finances based on important financial
indicators.
9.2 GENERAL DETAILS
Ambur is located at Vellore District and the total population as per 2001 census is
99624 Nos. Out of the same the total urban poor is 6410 Nos., comprising 6.43% of
the total population. The total number of slums is 11 Nos. with total slum population
of 15089 Nos, which aggregates to 15% of total population.
It is a Grade I municipality.
9.3 RECEIPTS
Receipts under the Revenue Account include taxes and fees, grants, water &
sewerage charges, income from properties, service charges charges & fees and
other income.
9.3.1 Property Tax
Property Tax is the single largest tax revenue source and accounts for around 28% of
the total revenue. This tax is levied on residential, commercial, industrial and vacant
lands. The property tax is levied on the basis of Annual Rental Value of the property.
The property tax is levied on the annual value of the property, which is determined
on the basis of gross rent at which the property can be reasonably expected to be
let out.
The Municipality currently charges property tax @ 34% per annum on the basis of
Annual Rental Value. The components of property tax are as below :
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