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VI. PROBLEMS IN THE IMPLEMENTATION OF PLANNED ENVIRONMENTAL MEASURES
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E. Financial constraints
The main sources of revenue for local authorities include:
- 1. Assessment rates, rentals, licensing fees or other charges
- 2. All charges or profits derived from any commercial activities, services or trading that are carried out by the local authority
- 3. All interest or money invested by the local authority, or income derived from idle assets
- 4. Any accrued revenue obtained by the local authorities, such as grants, contributions, endowments or other sources of income.
On the other hand, the local authorities also have external sources of revenue, largely from federal and State annual road grants, maintenance grants, project grants and equalization grants received through the State governments. The local authorities can also obtain loans from the federal or State governments or from private institutions with guarantees from the State governments. In the case of City Hall of Kuala Lumpur, the assessment collection and other charges have enabled it to remain financially autonomous. However, taking into account the level of, and the ever-increasing demand for, City Hall services an urgent review is needed of their sufficiency and adequacy. That is especially the case with matters concerning public health, sanitation, cleanliness, and the provision of parks and recreational facilities to improve the quality of life for Kuala Lumpur residents.
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