In India there is an elaborate mechanism to provide the funds to the Urban Local Bodies. The 74 th constitutional amendment has provided the constitutional basis for Urban Local Self-Government and has also specifies the revenue sorces for the Urban local Bodies (ULBs)
The various funding sources for the Nagar can be classified as :
* Tax revenues
I. Property Tax
II. Stamp Duty
* Non-Tax revenues
I. Trade Licenses
II. Birth-Death registration and Certificates Issue
III.Lease and Rent of ULB Properties
Part Stamp Duty Collections : Whenever a property is transferred from one owner to another the transfer of ownership is to be registered at the Stamp And registration Department's Office.Stamp Duty has to be paid for every Prperty Transfer. The state government has made available ---% of stamp duty for all property transfers occurring in the geographical area of the Urban Local Body. This fund is released by the District magistrate to the ULB.
3. Central Finance Commission Recommendation based The Central Finance Commission is constituted every five years for deciding primarily on the division of revenues between the Central Government and the states in India . The Central Finance Commision also provides the recommendations on the funds to be released out of the revenues of the Central Government to the Urban Local Bodies. As of now the funds are first disbursed to the state government and then Department Of Urban Development through the Directorate Of Local Bodies releases the funds to the Urban Local Bodies.
4. State Finance Commission Recommendation based The State Finance Commission is constituted every five years for deciding primarily on the division of revenues between the State Government and the institutions of local government like Panchayats and Urban Local Bodies. As of now the funds are disbursed by the Department Of Urban Development through the Directorate Of Local Bodies to the Urban Local Bodies.
5. Funds from the Revolving Fund
* Project Specific Grants from the Central Government
* Project Specific Grants from the State Government
* Project Specific grants from the Development Institutions like UNDP