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BRIEFING DOC 02 • FISCAL CENTRALISATION AUDIT RBI & OECD Data • 4 Min Read

Follow Your Tax Rupee: Why ₹97 of Every ₹100 Leaves Your City.

Citizens frequently ask: “I pay 30% income tax, 18% GST on everything, road tax, and stamp duty—why does my street still look broken?” Because under India’s fiscal architecture, the 2017 GST rollout abolished local municipal taxes (octroi and entry tax) without giving cities a constitutional share of GST.

Where Every ₹100 of Indian Public Tax Expenditure Goes Source: RBI Municipal Finance Report & 15th FC
Union Govt: ₹59
State Capital: ₹38
₹3
₹59 — New Delhi (Union): Income Tax, Corporate Tax, CGST, Customs, Cesses.
₹38 — State Capital: SGST, Stamp Duty, Vehicle Road Tax, Excise.
₹3 — Your City / Ward: Left dependent on property tax & discretionary State grants.
SHAREABLE PERSONAL TAX RECEIPT

Calculate & Share Your Monthly Ward Shortfall

Pick your city and slide to estimate your total monthly taxes (Income Tax + GST on bills, groceries, fuel, dining).

City:
₹5,000 / mo ₹25,000 / mo ₹75,000 / mo ₹1,50,000 / mo

Goes to Union Govt (59%)

National defence, highways, debt service, central schemes

Goes to State Capital ()

Controlled by State Ministries & parastatal boards

Stays in Today ()

Barely covers staff salaries & emergency patchwork

Under 35% Constitutional Fix

Formula share without raising your tax rate by ₹1

CITY-LEVEL FISCAL AUDIT

The Economic Engines Being Starved of Fuel

Compare what India’s major urban centres generate in central and state taxes versus the fraction returned to their municipal budgets.

City / Tier Est. Annual Tax Contributed Municipal Corporation Budget Local Share Retained Data Source
Bengaluru (BBMP) ≈ ₹2,50,000–3,80,000 Cr / yr ≈ ₹11,157 Cr ≈ 2.8% (₹2.80 / ₹100) BBMP Budget 2023–24 & Karnataka Commercial Taxes
Mumbai (BMC) ≈ ₹4,50,000+ Cr / yr ≈ ₹52,000–59,000 Cr ≈ 3.4% (₹3.40 / ₹100) BMC Budget 2023–24 (heavily reliant on state GST compensation)
Delhi NCR (MCD) ≈ ₹2,10,000+ Cr / yr ≈ ₹16,000 Cr ≈ 3.1% (₹3.10 / ₹100) Unified MCD Budget 2023–24 & Delhi Economic Survey
Chennai / Hyderabad / Pune ≈ ₹1,50,000–2,00,000 Cr / yr ≈ ₹6,200–9,500 Cr ≈ 2.9% – 3.3% GCC, GHMC & PMC Municipal Budgets; RBI Municipal Report
Tier-3 Towns & Gram Panchayats Indirect GST on all consumption < 5% own-revenue ≈ 1.5% – 2.5% 15th Finance Commission Rural & Urban Local Body Grants
INTERNATIONAL COMPARISON (OECD / WORLD BANK / IMF)

Every High-Performing Economy Keeps 28% to 51% Local

Critics claim fiscal decentralisation only works in small Western nations. In reality, huge developing economies like China, Brazil, and Indonesia transformed their cities by devolving 28%–51% of public expenditure locally.

FISCAL COSTING & EQUALISATION

Where Does the 35% Come From? (Zero Tax Hike + Equalisation Pool)

How we fund Indian cities and rural panchayats without raising taxes on citizens or starving lower-income states.

NEXT IN THE EVIDENCE SERIES → DOC 03

The 5-Point Constitutional Fix & Citizen Action Playbook

How we replace the 1992 “MAY” loophole with “SHALL”, put all 5 agencies under one elected Mayor, and lock 25% of contractor pay in an 8-monsoon ward escrow.