The Times of India 17.08.2010
Big mess in BBMP counting house
BANGALORE: Our ambitious BBMP is thinking big: it is aiming for a whopping Rs 7,500-cr budget; perhaps even more. But it is just about staying afloat with a measly Rs 150-200 crore in its chest.
Worse, BBMP sources estimate that over Rs 4,000 crore of this huge sum is likely to be spent on just clearing pending bills, spill-over works and loan repayments (See box). What remains will be channelled towards old works as there are very few or no fresh projects planned.
But the economics of the budget are unsound: the big figures projected on the budget draft submitted to the mayor, ride on the confidence of “probable” revenue from Akrama-Sakrama, a policy that’s still to be implemented, say BBMP sources.
The palike is also expecting a Rs 1,000-crore grant from the state government this year. MayorS K Nataraj will be meeting chief ministerB S Yeddyurappa on this issue shortly.
THE WORRY LINES
It was during the budget preparation exercise that members of the Tax and Finance Standing Committee, and the mayor himself, realized the loss borne by BBMP so far.
Even property tax collection, that was projected as “satisfactory”, has touched just Rs 800 crore of the targeted Rs 1,100 crore.
Trade licenses were another source BBMP was depending on: in a city of over 5 lakh traders operating within BBMP limits, only 39,000 have procured licenses so far, bringing in just Rs 3 crore in annual revenue as against an expected Rs 200 crore.
Speaking to The Times of India, the mayor said a majority of BBMP’s 27 departments have also suffered similar misappropriations during the past three-and-half years, when it was functioning in the absence of an elected body. He blamed “inactive officials” of the revenue, estate and advertising departments for this.
NEW POLICY FOR ILLEGAL HOARDINGS?
The advertising department, one of the Palike’s major revenue spinners, has been facing criticism over the illegal hoarding lobby. According to sources, many advertising companies which were trapped in legal issues have taken stay orders from the High Court, and are not paying up arrears either.
“This department has contributed just Rs 8 crore to the palike over the past one year. The expected amount is around Rs 50 crore. This budget has formulated a new policy which curbs illegal hoardings,” the mayor said.
CORPORATORS DEMAND Rs 50 CR PER WARD
Meanwhile, corporators have submitted their own ward-wise budget proposals before the Tax and Finance Standing Committee. Here’s how the mayor explains it: “Their expectations are big. They are spirited and we will not be able to meet their demands, which vary from Rs 10 crore to Rs 50 crore. We will try to convince them. Ward grants will be given, but new wards will get one-and-half times more than what old wards will get.”
HALT ON WORKS AGAIN
With the budget still to be announced, and pushed to the wall by the shrinking finances, new commissionerSiddaiah has cried a halt to all new works worth Rs 1,932 crore, that were recently given codes.
The picture could be clear only next week. “The details will be sent to all 198 councillors a week before the budget announcement,” Nataraj added.
