The Hindu          13.07.2012

BBMP Council approves budget amid protests

Staff Reporter

The ruling Bharatiya Janata Party in the Bruhat
Bangalore Mahanagara Palike (BBMP) Council approved the 2012-13 budget
with an outlay of Rs. 9,837.21 crore, an increase of Rs. 338.31 crore
from the initial Rs. 9,498.90 crore, presented on June 28.

As expected, amid protests by the Opposition Congress and Janata Dal (S) here on Wednesday, the budget was hurriedly approved.

The
outlay has been increased after accommodating the suggestions and
requests made by various councillors during the five days of
discussions, Ruling Party Leader N. Nagaraju said.

Earlier,
Commissioner M.K. Shankarlinge Gowda maintained that the budget was
“implementable” provided the BBMP “borrowed a little and increased
non-tax revenues”.

He had proposed to increase the property tax and sent a note to the Standing Committee for Taxation and Finance, he said.

“The
tax rate should have been increased in April 2011. However, the Council
resolved not to increase it for another two years. We have also
proposed increased service charges (imposed on those exempted from
property tax) from 25 per cent to 50 per cent,” he added.

Mr.
Nagaraju later said property tax for residential buildings would not be
increased. It would be hiked only for shopping malls, paying guest
accommodations and other commercial buildings.

Non-tax revenue

To
increase non-tax revenue, the BBMP proposes to double road cutting
charges for laying optic fibre cables to Rs. 600 a metre, increase the
building licence fee and a 100 per cent hike in the lease and rent rates
of BBMP-owned property. Improvement charges would be levied and the
subject is likely to be tabled before the Council soon, Mr. Shankarlinge
Gowda said.

Spill-over works

The
budget has a provision of around Rs. 2,500 crore for spill-over works.
Mr. Shankarlinge Gowda said that he had formed a committee, headed by
Special Commissioner K.R. Niranjan, to review them zone-wise by August
15 and publish a list of the approved works.

Municipal bonds

Responding
to several questions on municipal bonds, Mr. Shankarlinge Gowda said
that Union Minister for Urban Development Kamal Nath had stated that
civic authorities struggling to provide basic amenities must explore
this option.

The government issued an order regarding the special grant of Rs. 751 crore for select projects.

“Of
this, Rs. 100 crore has been released. The BBMP can float tenders as
the government has approved them in principle,” he added.

Two parks

The
BBMP proposed to set up two parks on the city’s outskirts with an area
of 100 acres each through the Bangalore Development Authority and was in
the process of identifying land in Kempe Gowda Layout and near
Anjanapura.

The Mayor’s medical grant has seen an
increase from Rs. 7 crore to Rs. 10 crore, while the emergency funds
with the Standing Committee for Taxation and Finance is up from Rs. 39
crore to Rs. 99 crore.

Mr. Nagaraju said that the
Mayor and Deputy Mayor would distribute their grants (totalling Rs. 175
crore ) equitably among all councillors.

A sum of Rs. 50 lakh had been earmarked to provide bicycles to the poor.

The
Dr. V.S. Acharya Anila Samparka scheme has not been scrapped; after the
gas connections were given, the BPL cards would not be cancelled.

Palike Bazaar plan

The
BBMP had dropped the proposal to construct Palike Bazaar at Freedom
Park. “There was opposition to it and it would have increased traffic
volume in a congested area. This bazaar will now be constructed in the
newly added areas,” he said.

• Outlay increased following suggestions by various councillors

• Note on increasing property tax sent to Taxation, Finance panel