Urban News

  • Increase font size
  • Default font size
  • Decrease font size
Financial Management

Corporation passes ‘secret’ budget citing code of conduct

Print PDF

The Times of India      28.03.2017 

Corporation passes ‘secret’ budget citing code of conduct

File photo
CHENNAI: The 2017-18 budget for Greater Chennai Corporation has been passed, but it may be a while before we know what is in it. Corporation sources, however, say the budget is bereft of any major new project.

Special officer and corporation commissioner D Karthikeyan passed the fiscal budget, but the civic body is not making the documents public, citing the model code of conduct which has come into force for the RK Nagar byelection. NGO Satta Panchayat Iyakkam on Monday wrote to chief electoral officer Rajesh Lakhoni asking if this reason is valid. The code came into effect on March 9 for the bypoll scheduled on April 12. Sources in the corporation say that the budget was passed on March 14 and that there have been no major announcements and the focus has been only on storm water drains which received more than Rs1,000 crore allocation.

The NGO asked the election office if it was its order to Greater Chennai Corporation to withhold publishing the budget, and if the corporation has sought the election panel's clarification in this regard. "When the state budget can be released to the public, why our city budget can't be publicised. The election is only for one constituency in the city," said SPI general secretary Senthil Arumugam. Out of the 200 wards in the city, RK Nagar constitutes seven wards.

Civic chief D Karthikeyan told TOI that the model code of conduct did not prevent the corporation from passing the budget but that they require permission for making the budget document public. "We need to clarify with the Election Commission of India regarding giving budget details to the press," he said.

Every year, the fiscal budget for the city is passed mid-March by the mayor and his council. Since the AIADMK-led council's term ended in October and councillor elections were suspended, all local bodies were headed by their executive chiefs doubling up as special officers. The latter carries out all functions in the absence of an elected council and mayor. Every department had prepared proposals apart from the routine calculations of expenditure by the end of February. Following this they sat for discussions on projects to be rolled out. "There has been an acute shortage of funds, so there are no new projects in this budget," said a senior civic official said.

Residents say that as long as the budget is made public after the model code is lifted, they won't complain. "We need to know about the funds allocated," said Mythili Ramesh, a resident of Perungudi. "We are not involved in the budget planning stage, we can't be left out after the budget is passed too."
 

Tweaked accounting procedure helps Corporation show surplus in budget

Print PDF

The Hindu           23.03.2017  

Tweaked accounting procedure helps Corporation show surplus in budget

Corporation Commissioner and Special OfficerK. Vijayakarthikeyan releasing the 2017-18 budget copy at the Corporation office on Wednesday. Deputy CommissionerP. Gandhimathi is also in the picture.Photo:S. SIVA SARAVANANS_ SIVA SARAVANAN  

First surplus in recent past and by a Special Officer after 20 years

A change in accounting procedure has helped the civic body present a surplus budget for 2017-18. Corporation Commissioner and Special Officer K. Vijayakarthikeyan, who presented the budget in the presence of Deputy Commissioner P. Gandhimathi, Assistant Commissioner-Account R. Senthilkumar and others, said that this year’s budget had accounted the surplus to be Rs. 13.04 crore.

The budget had accounted the total revenue at Rs. 1,072.42 crore and expenditure at Rs. 1,059.38 crore.

Of the Rs. 1,059 crore the Corporation planned to spend in the next financial year, each ward would get only about Rs. 6 crore as the civic body had earmarked Rs. 501 crore for capital expenditure (roads, street lights, etc.) from its fund.

It would also get around Rs. 120 crore from the State Government and another Rs. 50 crore from the Central Government.

The Corporation would use the remaining to meet its establishment cost - Rs. 150 crore, repay borrowed capital Rs. 7 crore and pay interest on borrowings Rs. 11 crore, the Assistant Commissioner Mr. Senthilkumar said.

The civic body had this year adopted the accounting procedure the Commissioner for Municipal Administration had suggested, where its total revenue is calculated based on 100 % of the current year’s tax demands (property tax, water charges and a few non-tax demands) and 70 % of outstanding tax (arrears).

This had helped the Corporation arrived at a realistic revenue picture, Mr. Vijayakarthikeyan said and added that a surplus budget would mean better planning and streamlined spending.

For the current financial year (2016-17), the Corporation had earlier estimated its revenue and expenditure (budget estimates) to be Rs. 1,101.70 crore and Rs. 1,178 crore respectively but it had to revise those to (revised estimates) Rs. 874.95 crore and Rs. 958 crore respectively.


The downward revision was on account of inflated initial estimates.

The budget also revealed the Corporation’s financial health - it owes contractors Rs. 42 crore for the works they had completed and its fall in income from investments - in 2015-16 the Corporation had earned Rs. 72.51 crore and for 2017-18 it would earn a mere Rs. 2.33 crore.

Mr. Vijayakarthikeyan said that the Corporation had attempted to present a realistic budget.

The coming financial years would see the civic body in better financial health.

The coming financial years would see the civic body in better financial health

Vijayakarthikeyan

Corporation Commissioner

 

Corporation budget as per CMA guidelines

Print PDF

The Hindu       07.02.2017  

Corporation budget as per CMA guidelines

In all probability, the Coimbatore Corporation budget for 2017-18 may not be an exercise with public participation and budget presentation, too, may be a very low-key affair.

Sources in the civic body said that the Corporation was preparing the budget as per instructions from the Commissionerate of Municipal Administration (CMA), which has prescribed a standard format for municipal corporations across the State.

The budget would be under five heads - accounts, revenue, engineering, town planning and health - and not in the format the corporation had been preparing by having separate account heads for property tax, water charges, monthly rentals, etc.

After the CMA sent the instructions around the last week of January 2017, the corporation had been preparing the same.

There was no deadline as of now. Once it finished the budget preparation, the corporation would send the draft to the CMA for approval and thereafter release the approved budget.

There would be no budget presentation, either, as there was no council. The Special Officer - Commissioner K. Vijayakarthikeyan - would release the budget in his chamber and a press release could follow.

But there was nothing in the rule that prevented the Corporation from seeking suggestions from the public, non-governmental organisations or other bodies, especially when there was no council, said B. Balachandran, a former Regional Director of Municipal Administration.

The Special Officer preparing the budget should take inputs from his subordinate officers - city engineer, city health officer, town planning officer and others - and also from members of the society and various organisations.

In fact, the corporation could issue a press release inviting suggestions. And after the government approved the budget, the corporation should make it public.

Former councillor K. Purushothaman said that the corporation was obligated to consult the public in preparing the budget because it was doing so with public money. It should consult leaders of recognised political parties, consumer bodies and other civil society organisations.

And, what applied to the Union and State budgets would also apply to the civic body budget, he said and added that it should remain a only-bureaucracy exercise.

 


Page 2 of 14