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