Rst1 Task 4

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4.3.3.2. Financial constraint The other point on which leaders reacted as one of the challenges was the financial constraint to facilitate instruments for property valuation, to pay compensation for the expropriated people. The researcher identified that, the Municipality and Land Development and Management did not identified effective use of source of revenue. But, first of all, the broad source budget should be identified. These are the internal and external revenue source. The internal income sources are the most decisive financial support levers accessible to a municipality because without effective, predictable generation of internal revenues, it will be impossible to attract new, external sources of funding (Anand Sahasranaman & Vishnu Prasad, 2014). External financial supports will be available to municipalities only on the basis of the internal revenues they generate now and are …show more content…

Any judgment of the internal financing capability of a municipality is, therefore, a judgment on its governance standards. A better governed municipality implies better information availability, better assessment capability and better collection efficiencies that are then reflected in the quantum of revenues generated through internal financial support levers. Consequently, any effort to significantly get better the infrastructure provision scenario in Gimbi town will need to begin by giving a significant push to improving the assessment, enforcement and collection of internal revenue levers (Anand Sahasranaman & Vishnu Prasad, 2014). According to the report of Gimbi town Municipality, annual average revenue is only 5.6 million. This indicates that there is a problem of exhaustively use of the resource and in efficient revenue collection from the identified

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