We will not increase taxes as we dont want the citizens to suffer, said acting municipal commissioner R A Rajeev. In the past few months, the countrys richest municipal corporation has been running out of funds. The global slowdown and an increase in salaries of employees after implementation of the Sixth Pay Commission have left a large hole in the civic coffers. While the recessionary trend has led to a significant dip in octroi collections, the BMCs single largest source of revenue, increase in salaries has caused establishment costs to rise by nearly Rs 1,800 crore.

Rajeev remained hopeful, however, of an increase in octroi collections. Collections have begun showing an upward trend, he said.