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Financial Management

Corporation scores poorly in public deposit mobilisation

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The Hindu     31.07.2012

Corporation scores poorly in public deposit mobilisation

Karthik Madhavan

One of the glaring underperformances that came to light during the recent meeting to review the progress of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) schemes was in mobilisation of deposit from public.

On the water supply front, the Corporation ought to have collected Rs. 20 crore from the public. But the progress report says that Corporation had not collected a paisa.

And this comes almost after four years of the start of the Pilloor dedicated water supply in 2008.

The Corporation did initiate attempts to mobilise user charges by way of increasing water tax but they were stymied.

The Corporation first proposed increase in user charges in December 2009 by suggested that the minimum monthly user charges (up to 15,000 litres) could be Rs. 100, Rs. 6 per 1,000 litres for consumption from 15,001 to 20,000 litres, Rs. 8 per 1,000 litres for consumption from 20,001 to 1,50,000 litres, Rs. 10 per 1,000 litres for consumption from 1,50,000 litres and above and a deposit of Rs. 5,000.

The Corporation also proposed similar increase in tariff for bulk residential connections, where the width of the supply pipeline is 20 mm, and commercial connections.

The Corporation proposal said that the civic body would start collecting the charges with effect from October 1, 2010 and increase the user charges by 10 per cent every two years thereafter. And, as per law, the Corporation also invited comments from the public.

But the Council did not accord approval for the proposal.And to date it has not, despite the officials promising that they would increase the tariff to boost revenue.The reason with which the Corporation prevented the passage of the resolution was that the civic body could accord approval to the increase in charges once the civic body implemented the 24x7 water supply scheme.

Without the public getting water they would not pay and asking them to pay for water that the civic body would supply in the future was unfair.The Council derided the quantum of increase saying that the poor would suffer.

This has put the civic body in a spot of bother, as the Corporation as a JNNURM Mission City is supposed to increase the tariff to mobilise resources.Official sources said that it was for the Council to take up the resolution and pass the same.

And they were hopeful as the city residents had started enjoying 30 mld from the Pilloor dedicated water supply scheme and would soon get the entire quantum of water.

Similarly, the Corporation has also not made much headway in collecting user charges for the underground drainage project.The progress report says that that the Corporation has collected only Rs. 11.04 crore of the estimated Rs. 84.53 crore. The amount collected works out to a mere 13 per cent.

Here again, the sources said that they were awaiting the Council to collect the user charges.The Council had decided to collect the charges once the scheme was complete.

Last Updated on Thursday, 14 February 2013 11:10

Only 42% Plan spending till December 31

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The Hindu        23.01.2011

Only 42% Plan spending till December 31

C. Gouridasan Nair

The total State Plan outlay was Rs.10,025 crore; local bodies fared badly in spending

Although just one more quarter remains for the close of the current financial year, the State appears to have slipped in meeting its Plan targets for the last three quarters with the Plan spending remaining below 50 per cent as on December 31, 2010.

According to the monthly Plan review conducted by the State Planning and Economic Affairs Department, based on reports received till January 11 from 90 out of the 160 implementing officers, Plan spending up to December 31, 2010, came to only 42 per cent of the total State Plan outlay of Rs.10,025 crore, the actual amount being Rs.4,213.87 crore.

The expenditure up to the end of November was Rs.3,708.79 crore, representing 37 per cent of the outlay. The State was expected to achieve a Plan spending of 70 per cent of the total outlay by December 31.

The local bodies too have not fared well in Plan spending.

Out of Rs.2,197.65 crore allocated to the local self-government institutions in the State Plan, the local bodies could spend only Rs.716.59 crore (35 per cent) as on December 31.

The government had earmarked Rs.2.050 crore for the local bodies in the 2010-'11 budget. The government had deducted Rs.147.65 crore from this as unspent balance and kept Rs.4.35 crore as unallocated funds to provide special incentive to the best local self-government institution. While the grama panchayats and municipalities utilised 39 per cent of the allocated amount by December 31, the share of block panchayats was 40 per cent and that of district panchayats 36 per cent.

Worst performers

The worst performers have been the municipal corporations, which together utilised just 27 per cent of the allocation till the close of the last calendar year.

The implementation of externally-aided projects also has left much to be desired with the utilisation of funds being a bare 27 per cent. Out of the total outlay of Rs.1,216.48 crore, the total amount spent till December 31 was Rs. 324.04 crore.

The same was the case with the 11 schemes for food security for which the total outlay came to Rs.111.07 crore. The total expenditure on this count till December 31 was Rs.33.97 crores (31 per cent).

  • State was expected to spend 70% by December
  • Utilisation for externally-aided projects low

    Polls advance civic budget to Feb.

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    The Hindu       20.01.2011

    Polls advance civic budget to Feb.

    January 20th, 2011

    Jan. 19: Chennai corporation’s budget session has been advanced due to Assembly elections. Mayor M. Subramanian, who chaired a budget review meeting at Ripon Buildings on Wednesday, said the civic budget would be tabled by February 15.

    The corporation council, for the last four years, has neither revised the tax nor introduced a new tax component. Addressing reporters, the mayor said last year the corporation budget announced 122 new schemes; of this, more than 100 welfare schemes have been implemented. The remaining announcements will be implemented before the middle of February. The officials have been instructed to speed up the pending proposals and the overall performance of the corporation departments was assessed.

    In two days, a high-level meeting will be held to discuss new ideas regarding the ensuing budget, and, subsequently, an all-party meeting will also be called, he said.

    When asked whether the new budget will focus on infrastructure, Mr Subramanian said several major projects like construction of new flyovers and micro and macro drain works were under way, and the corporation will focus more on completing these projects and thrust will be given to health and education sectors.

    Corporation sources opined that with implementing the sixth pay commission recommendations and the expenditure of the civic body shooting up due to new schemes announced in the previous budgets, the pressure is high on the revenue department to ensure that the financial burden of the corporation is met through its annual tax collection.

    However, as usual, the budget will focus on health and education sectors and with elections round the corner, the civic body is all set to present a tax-free budget, sources added. Corporation commissioner D. Karthikeyan, deputy commissioners Anu George, Darez Ahamed and M. Balaji, along with senior engineers took part in the budget review meeting.


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