An Evaluation Of Financial Performance Of Municipal Corporation In Himachal Pradesh With Special Reference To Shimla Municipal Corporation

Abstract

Municipal corporations play an essential role in urban governance and development. They are responsible for the administration and management of city affairs, including the provision of essential services to citizens. The present paper focused on the financial performance, sources and growth rate of revenue and heads of expenditure of the Shimla Municipal Corporation. Municipal Corporation received revenue from source of tax revenue (property tax and show tax) and non-tax revenue (rental income, user fee and charges), transfer from upper tier of government and grants as recommended by state and central finance commission. In this case, the study makes an attempt to identify the sources of revenue and expenditure and analyses the trends in revenue and expenditure of Shimla Municipal Corporation for 7 years from 2013-2014 to 2019-2020.  We concluded from the data of Shimla Municipal Corporation has been heavily reliant on higher levels of the government because its revenues are lower than its expenditure. This is a significant problem that municipal corporations face in managing their limited sources of revenue, which frequently leads to their dependence on the state and central finance commission.