Asian Journal of Management and Commerce
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P-ISSN: 2708-4515, E-ISSN: 2708-4523

Asian Journal of Management and Commerce


2021, Vol. 2, Issue 2, Part A
An analysis of funds management of Karnataka municipal corporations with special reference to Mysuru and Mangaluru city corporations


Author(s): Mahesha NM

Abstract: Urban development is a state subject and the Constitution (Seventy-fourth) Amendment Act, 1992 has delegated many functions to Urban Local Bodies. Government of India, however, plays a coordinating and monitoring role and also supports various urban housing programs, urban livelihood mission and overall urban development through Central and Centrally Sponsored Schemes. The urban population increased from 78.9 million in 1961 to 377 million in 2011, and is estimated to reach about 470 million in 2021,577 million in 2030 and 700 million in 2041 (GOI, 2013). According to Census 2011, as many as 53 cities in India had a million plus population. More than 50% of the Country’s population will be Urban by 2050 (UN report, 2007). It has been observed that Municipal areas in India produce more than 50% of the country's GDP (GOI, 2014). Despite rapid urbanization and its importance, the Municipal Corporations have been unable to cater to the demands of civic amenities in a better way. The crux of the problem is "shortage of finance". The revenues of Municipal Corporations have witnessed a slow growth rate. Excess interference of the State Government, wasteful expenditure, laxity of officials in implementing tax procedures and collection of taxes accentuates this problem. This problem has bothered all the urban local bodies and the Mysuru and Mangaluru City Corporations are no exception to this. This calls for streamlining administrative matters of finance. The Tax and non-Tax revenues of the municipal corporations have remained inelastic. The slow growth of Tax and non-Tax revenues is a matter of great concern in view of the fast-growing urban population and the consequent need for upgrading continuously of the civic amenities and services. The analysis shows that there exist wide disparities in financial position in terms of generating resources as well as resource allocation. There exists variation in receipts on revenue and capital accounts due to difference in revenue raising capacity and difference in government schemes with regard to share of revenue. Both the municipal corporations depend on internal revenue from the taxes and non-taxes than the external revenue (loan and grants) from the government. Both the municipal corporations maintained revenue surplus and it indicate that they were able to meet not only the revenue expenditure and also derived a large part of revenue surplus from revenue account to capital account for creation of capital assets. Both the corporations played an effective role in providing quality civic amenities to its citizens.

Pages: 37-43 | Views: 34 | Downloads: 11

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How to cite this article:
Mahesha NM. An analysis of funds management of Karnataka municipal corporations with special reference to Mysuru and Mangaluru city corporations. Asian J Manage Commerce 2021;2(2):37-43.
Asian Journal of Management and Commerce