Municipal Receipts Before and After Amalgamation - A Study of Greater Chennai Corporation of Tamilnadu

International Journal of Economics and Management Studies
© 2022 by SSRG - IJEMS Journal
Volume 9 Issue 12
Year of Publication : 2022
Authors : J. Vinetha Devi, J.S. Sindhu
pdf
How to Cite?

J. Vinetha Devi, J.S. Sindhu, "Municipal Receipts Before and After Amalgamation - A Study of Greater Chennai Corporation of Tamilnadu," SSRG International Journal of Economics and Management Studies, vol. 9,  no. 12, pp. 85-92, 2022. Crossref, https://doi.org/10.14445/23939125/IJEMS-V9I12P110

Abstract:

Local bodies are commended as an essential part of a perfect government structure, mainly for a geographically vast country like India. An effective financial system is necessary to perform these local body functions successfully. More than 50 percent of the world’s population is now living in the cities. This ratio is expected to rise to 70 percent by 2050. (GOI., 2019). India’s urbanization rate is higher than the global average and added to it. Its metropolitan cities are lacking in proper civic infrastructure facilities and municipal services due to a shortage of financial resources. As a result of the migration of inhabitants from rural to urban areas and with rapid population growth, the non-metropolitan cities are merged into Municipal corporations. This merger or amalgamation, in fact, aims to improve the financial viability of the corporations. The area under the Chennai Corporation also expanded, with the State Government issuing an order to merge several neighboring local bodies with it in 2009-10. With this background, the present study aims to analyse the total receipts of Greater Chennai Corporation before and after its amalgamation in the year 2010. The study made use of tables, charts, bar diagrams etc. Simple statistical tools such as percentage analysis and Inferential statistics such as simple linear Regression and ‘t’ test have been used to analyze the data and also for estimation purposes.

Keywords:

Municipal Finance, Municipal corporation, Revenue receipts, Capital receipts, Amalgamation and merger of Municipalities.

References:

[1] I Ahluwalia et al., “State of Municipal Finances in India: A Study Prepared for the Fifteenth Finance Commission,” Indian Council for Research on International Economic Relations, New Delhi, 2019.
[2] Antonio F. Tavare, “Municipal Amalgamations and their Effects: A Literature Review,” Miscellanea Geographica – Regional Studies on Development, vol. 22, no. 1, pp. 5-15, 2018. Crossref, https://doi.org/10.2478/mgrsd-2018-0005
[3] Brian Drollery, and Lin Crase, “Is Bigger Local Government Better? An Evaluation of the Case for Australian Municipal Amalgamation Programs,” Urban Policy and Research, vol. 22, no. 3, pp. 265-275, 2004. Crossref, https://doi.org/10.1080/0811114042000269290
[4] Deccan Chronicle: Tamilnadu to be Most Urbanised State by 2030, 2017.
[5] Vincent Vinod Dsouza, “The Effect of Fiscal Decentralisation on the Expenditure of Urban Local Bodies - An Econometric Evidence from Mangalore City Corporation-India,” Innovative Journal of Business and Management, vol. 7, no. 7, pp. 151-156, 2018.
[6] Enid Slack, and Richard Bird, Merging Municipalities: Is Bigger Better?, Institute of Municipal Finance and Governance, 2013.
[7] GOI: Municipal Performance Index: Assessment Framework, Ministry of Housing & Urban Affairs, GOI, 2019.
[8] GOT: Budget Documents: Various Issues, Chennai Municipal Corporation, Government of Tamil Nadu, Chennai 2010-2020.
[9] J.V.Arun, and A. Prem Kumar, “Municipal Receipts of Chennai Corporation,” Peninsular Economist, vol. 39, no. 1, 2018-2019.
[10] Vijay Kelkar, and Ajay Shah, In Service of the Republic: The Art and Science of Economic Policy, Penguin Allen Lane, USA, 2019.
[11] Amitabh Kundu, Debolina Kundu, and Soumen Bagchi, “Regional Distribution of Infrastructure and Basic Amenities of Urban India,” Economic and Political Weekly, vol. 7, no. 28, 1999. 
[12] Mahesha N M, and K. Nagendrababu, “An Evaluation of Financial Performance of Municipal Corporations in Karnataka with Reference to Mysuru and Mangaluru City Corporations,” YMER, 2021.
[13] P.Bharathi Devi, and Dr.A.K.V.S.S.R.Rajasekhar, "Incidence of Urban poverty in Guntur Municipal Corporation of Andhra Pradesh-An Empirical Study," SSRG International Journal of Economics and Management Studies, vol. 7, no. 10, pp. 109-112, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I10P117
[14] Mathur O M, “Urban Finance in Indian Infrastructure, Report 2006, 3i Network,” Oxford University Press, New Delhi, 2006.
[15] Melville McMillan, and Bev Dahlby, “Do Municipal Governments Need More Tax Powers? A Background Paper on Municipal Finance in Alberta,” SPP Research Papers, The School of Public Policy, University of Calgary, vol. 7, no. 33, 2014.
[16] Mehta Ketan J, “A Comparative Study on Public Expenditure and Income of Rajkot Municipal Corporation,” Thesis PhD, Saurashtra University, 2013.
[17] Michael Debabrata Patra, Report on Municipal Finances, RBI, 2022.
[18] NITI Aayog: National workshop on Municipal Finance & Effective and Accelerated implementation of Smart Cities, 2018.
[19] Oxford Economics, Global Cities - Which Cities will be Leading the Global Economy in 2035, 2018.
[20] Raj Kumari, “Financial Performance of Urban Local Bodies in Punjab- Case Study of Selected Municipal Corporations,” International Journal of Business Management and Scientific Research, vol. 6, pp. 35-41, 2015.
[21] RBI, Report on Municipal Finances, 2022.
[22] S G Hundekar, and N M Makandar, “Evaluating the Financial Efficiency of Selected City Municipal Corporations in Karnataka,” Research Journal of Commerce and Behavioural Science, vol. 6, no. 2, pp. 20-29, 2016.
[23] Sonal N, “An Empirical Study on Financial Performance of Corporations of Gujarat State,” International Journal of Advanced Research in Computer Science and Management Studies, vol. 2, no. 1, pp. 18- 26, 2014.
[24] Suman Paul, “Finances and Governance of Urban Local Bodies: An Approach of Urban Development Perspective from a Developing Country (India),” Journal of Urban and Regional Analysis, vol. 6, no. 2, pp. 181-201, 2014.
[25] World Bank Report, Urban Developmet Overview, 2022. [Online]. Available: http;//www.worldbank.org