Report on services provided at subsidized rate.

(1) The Chief Municipal Officer shall, while preparing the budget estimate, add at the end thereof a report indicating whether the following services are provided at a subsidized rate and, if so, the extent of the subsidy, the reasons thereof, the source from which the subsidy is met, and the sections or the categories of the local population who are the beneficiaries of such subsidy, namely:- (a) water-supply and disposal of sewage, and (b) scavenging, transporting, and disposal of solid wastes. Explanation. - A service shall be construed to be provided at a subsidized rate if the total cost of providing such service, comprising the expenditure on operation, maintenance, and adequate provision for depreciation of assets and debt servicing, exceeds the income for the rendering of such service. (2) The Executive Authority shall examine the report referred to in sub-section (1) and shall place it before the Municipality with its recommendations, if any.