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Financial Management

Corporation to improve tax collection, revise rent for its establishments

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The Hindu                      15.03.2013

Corporation to improve tax collection, revise rent for its establishments

R. Prabhakaran, Chairman, Finance and Taxation Committee—PHOTO: S. SIVA SARAVANAN
R. Prabhakaran, Chairman, Finance and Taxation Committee—PHOTO: S. SIVA SARAVANAN.
 
Budget with Rs. 20.98 crore presented.

Finance and Taxation Committee Chairperson R. Prabhakaran on Thursday presented the AIADMK-led Council’s second budget that has a deficit of Rs. 20.98 crore.

He said that the revenue receipts and capital receipts stood at Rs. 808.12 crore and the revenue expenditure and capital expenditure at Rs. 829.11 crore. Last year’s deficit was Rs. 27.70 crore.

The Corporation would make good the deficit by improving the tax collection and revising rent for its establishments. Mayor S.M. Velusamy later told reporters that the civic body had revised and fixed the market value as rent for shops, the rents of which were due for revision. This had led to an increase in revenue from Rs. 4.50 crore to Rs. 14 crore.

The civic body had a very high percentage of tax collection, which was another reason to not worry about the Rs. 20.98 crore deficit.

Mr. Prabhakaran substantiated this in his budget speech wherein he said that tax collection had increased from Rs. 104.00 crore to Rs. 115 crore during 2011-12. At present, 82 per cent tax assessment job was complete and once the task was completely over, the property tax demand would go up to Rs. 128 crore. To further increase revenue he introduced a new tax – name transfer fee. “Every year the Coimbatore Corporation receives applications for name transfers due to sale of properties, transactions, execution of wills and transfer of properties to legal heirs.”

“After such change of ownership of property, the property tax and vacant land tax assessments undergo name change. For every such name change, the Coimbatore Corporation will collect Rs. 200 or 0.1 per cent of the property value – whichever is higher as name transfer fee.”

On the development front, Mr. Prabhakaran said that the Corporation would have a new record room at Rs. 75 lakh, a new Thiyagi Kumaran Market at Rs. 2.50 crore, build staff quarters for sanitary workers, impart skill training for students, career guidance programme for Class X and Plus Two students and a new e-learning facility for students at Rs. 1 crore. He also spoke of upgrading noon meal centres, providing tablet computers to students of the Corporation’s Special School at R.S. Puram, improving laboratories at Corporation schools, renovating playgrounds and appointment of a sports officer to improve sports in schools.

 

Corporation budget today

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The Hindu                    14.03.2013

Corporation budget today

Staff Reporter 

Coimbatore Corporation will hold the budget session of its Council on March 14 at 10.30 a.m.

According to sources, the meeting will be held in the presence of Mayor S.M. Velusamy, who will read out the major announcements. Finance and Taxation Committee Chairman R. Prabhakaran will present the budget, which will be his second.

 

Corporation failed to spend 10% of last year budget

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The Times of India                       13.03.2013 

Corporation failed to spend 10% of last year budget

CHENNAI: Another budget has been presented and new outlays made, but the corporation has not spent what it had set apart for different kinds of civic work. According to its own records, it has not spent 314 crore - more than 10% of the 2,922 crore budget - in 2012-13.This underlines the ad hoc preparation of budgetary estimates and the lack of political will to execute projects, experts say.

In every budget, the civic body allocates a significant portion as capital expenditure for infrastructure like roads and storm water drains as well as for education but by the end of the year most of the money is still unspent. The result: Roads have potholes, drains are clogged, and garbage bins overflow. More importantly, these funds lapse and cannot be carried forward to the next financial year.

Records reveal that the civic body underutilizes several crores sanctioned for the corporation schoolchildren. Though the schools remain ill-equipped, the education department has spent only 18% of the funds allotted to it. It spent just 2.7 crore of the 15 crore sanctioned for corporation schools last year. Some sources in the civic body said that 31 corporation schools were closed since 2009 due to lack of students.

The buildings department has spent only 34.6 crore of the 82 crore it received. It is yet to construct public toilets because of the poor response from private firms. In July, the buildings department announced that it would construct 5,000 modern toilets across the city. It later revised this number to 2,000. So far, not one toilet has been built.

Close to 10 crore has been unused in the 15 corporation zones. Despite complaints about uncleared garbage, the solid waste management department has let close to 20% of its funds lapse. The second highest number of complaints the corporation receives relates to non-functioning street lights but the electrical department has spent less than half its allocation (44% ). However, the health department spent 2.69 crore more than its allocation and the mechanical department overran its budget by 10.7 crore.

A senior corporation official said, "There is no clear strategy or plan about utilizing funds. There is little coordination among various departments in the civic body." Experts blame inefficiencies while planning and preparing the budget. M G Devasahayam, social activist and former civil servant, said, "The priorities of the civic body are wrong. If projects are slow to take off or complete, it shows the civic body's inability to fully use its finances." 
Last Updated on Wednesday, 13 March 2013 11:58
 


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