What should be included in the calculation for the amount to be raised by taxation?

The amount to be raised by taxation should encompass general expenditures and revenue losses. This includes the necessary funding for day-to-day municipal operations, services, and programs, which often face rising costs. Additionally, it accounts for any revenue losses that may affect the municipality's ability to fund these operations adequately. By incorporating both general expenditures and revenue losses, municipalities can effectively plan their budgets to ensure they have sufficient tax revenue to meet their financial obligations and service requirements throughout the fiscal year.

This approach provides a more comprehensive view of the financial needs of the municipality compared to the other options, which are either too narrow or irrelevant to the overall budgetary requirements. For example, focusing solely on debt service obligations would neglect other critical expenses, while unrestricted grant funds do not represent required taxation unless there are specific conditions linked to their use. Similarly, project-based expenditures are typically not reflective of the entirety of a municipality's financial landscape since they may fluctuate based on specific initiatives rather than ongoing responsibilities.