Municipal corporations need to impose adequate user charges for essential services like water supply and sanitation, to boost non-tax revenues and provide quality public services, according to a Reserve Bank of India (RBI) report.
The 'Report on Municipal Finances' delves into the fiscal position of 232 municipal corporations (MCs) from 2019-20 to 2023-24 (Budget Estimates), with a focus on the theme 'Own Sources of Revenue Generation in Municipal Corporations: Opportunities and Challenges'.
"MCs can significantly enhance them (non-tax revenues) by applying appropriate and adequate fees and user charges for essential services such as water supply, sanitation, and waste management while also ensuring seamless availability of high-quality public services," it said.
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