An Examination of State Compensation to Andhra Pradesh Municipalities

The purpose of this paper is to spotlight on the issue of the Andhra Pradesh State Government's compensation to its municipalities in lieu of the taxes on motor vehicles. The first section describes the constituent parts of the compensation, the second section is devoted to analyze the basis of compensation and examines the stationary compensation in terms of increasing revenue for the State from the motor vehicles tax and pleads for a rise in the compensation. Finally, the third section summarizes the whole issue.