Source of Income of Nagar Palika and Nagar Parishad
Both Nagar Palika (Municipal Councils) and Nagar Parishads (Municipal Corporations) are responsible for collecting taxes and fees from the community to fund their operations and development projects. The sources of income for Nagar Palika and Nagar Parishads may include:
- Property tax: This is a tax levied on the value of properties within the jurisdiction of Nagar Palika or Nagar Parishad. The tax is based on the value of the property and is collected annually.
- User charges: These are fees collected for the use of certain services provided by Nagar Palika or Nagar Parishad, such as water supply, sanitation, and solid waste management.
- License fees: These are fees collected from businesses or individuals for the issuance of licenses or permits required to conduct certain activities within the jurisdiction of the Nagar Palika or Nagar Parishad.
- Grants and subsidies: Nagar Palikas and Nagar Parishads may receive financial assistance from the state or central government in the form of grants or subsidies for specific development projects or for general purposes.
- Other sources: Nagar Palikas aPalikand Nagar Parishads may also generate income from sources such as rent from properties owned by the local government, fines and penalties, and investments.
In addition to these sources of income, Nagar Palika and Nagar Parishads may also borrow money to fund development projects. However, they must ensure that they have the means to repay the loans and maintain financial stability.
Difference Between Nagar Palika and Nagar Parishad
In India, urban local government refers to the system of local government that governs and administrates the cities and larger towns in the country. There are two main types of urban local government in India:
- Nagar Palika and
- Nagar Parishad.
A Nagar Palika, also known as a Municipal Council, is a local government body that governs a city or town with a population of up to 100,000. It is responsible for providing civic amenities and services to the residents of the city or town, such as roads, water supply, and garbage collection.
A Nagar Parishad is a higher level of urban local government responsible for administering a city with a population of more than 500,000 in India. It has more powers and responsibilities than a Nagar Palika. It is responsible for providing a wider range of civic amenities and services to the residents of the city or town.
These two institutions are established and governed by the Municipal Corporation Act of the respective state government.