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Financial Management
   
 

The policy of the State Govt. regarding financial management of the Urban Local Bodies rests of two main plans, i.e. strengthening the financial position of the Urban Local Bodies and simultaneously protecting and safeguarding the interest of citizens belonging to economically vehicle sections. The State Govt. has laid particulars emphasis on fiscal sustainability of the Urban Development initiatives and has taken the lead in designing steps on improve municipal management including that of administrative restructuring and the capacity building of the Urban Local Bodies. Two State Finance Commissions setup by the State Govt. have carried out elaborate studies on municipal finances and recommended measures for enhanced municipal finances. In this State the State Govt. has accepted the policy of user charges against certain services in the municipal areas and necessary rules for realization of charges for supply of water have already in brought into force. Necessary provision has also been made in the rules to protect and safeguard the interest of the citizens belonging to economically weaker section.

The policy of financial management of the Urban Local Bodies is based on the following principles :

 

1. Resource Mobilization:

 

To strengthen the financial capability of urban local bodies the State statutorily empowers the municipalities for imposition and collection of taxes and non-tax levies. As the ULBs are the local self governments it should have a capability at  to cover its day to day expenditure for running the municipal administration. In view of this fact in this state the ULBs are statutorily empowered to impose different tax and non-tax revenue and user charges for the municipal services  provided. Fund Generated from these sources  shall help the ULBs to meet the O&M Cost for civic service and also to meet the ever-growing demand of such services in the urban areas. The State Govt. is quite aware of the fact that the urban local bodies are saddled with financial burden for providing basic civic services like water supply, drainage, sewerage, conservancy and if this problem is not addressed to immediately, in the near future the urban local bodies may not be able to maintain the standard of these services. In this situation, the State Government is encouraging the urban local bodies to realise preferably the whole or at least a part, of the operation and maintenance cost for different services from the beneficiaries excepting the urban poor.

 

2. Maintenance of Accounts of Municipal fund:

 

The municipal funds in this state are administered by befitting statutory provisions. For the municipalities there exist the West Bengal Municipal (Finance & Accounting) Rules, 1999. Manner of maintenance of Accounts of Municipal Funds along with relevant Forms, tender procedures, preparation of budget estimate, payment of money, etc. have been detail in the said rules. Recently a comprehensive amendment has been made in the said rules to ensure maintenance of Municipal Accounts through “Double Entry Accrual Based System”.

 
 
 
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