GHMC has unveiled a Rs. 3,311.14 crore draft budget for the year
2011-12, more than Rs. 650 crore compared to the preceding year. This,
when it could spend just Rs. 219.93 crore till September last year on
works and the revised estimates claim the figure will go up to Rs.
1,686.18 crore.

Yet undeterred, the municipal corporation set itself a
lofty ambition of spending Rs. 2.031.79 crore on various infrastructure
works in the next financial year with no tax hikes.

For bankrolling most projects, it is expecting largesse
in the form of grants from Centre – Rs. 1,192.61 crore and a bank loan
of Rs. 300 crore.

Mayor B. Kartika Reddy, also the ex-officio chairperson
of the standing committee, presented the budget proposals for approval
to the general body . However, not only corporators but Deputy Mayor
Jaffer Hussain, floor leaders of all parties including the ruling
Congress-MIM alliance, TDP and BJP were critical of the proposals.

They not only put forth several demands but also
demanded a thorough review. But most of their protests were brushed
aside and Ms. Reddy adjourned the meeting after more than five hours of
debate asking Commissioner Sameer Sharma to incorporate changes .

At one point, corporators got divided into old city,
core city parts of erstwhile MCH and suburbs, with each demanding a
“special budget” for their respective regions!

Contesting it, MIM MLC Syed Amin Jaffri pointed out that
Rs. 530-odd crore was sought to be spent in ex-MCH region with about
Rs. 5 crore in each circle as against Rs. 2,700-odd crore in the suburbs
or Rs.55 crore for each circle. “The government should be urged to give
substantial share of tax revenues and grants to take works,” he said.

Earlier, the Mayor as well as Additional Commissioner
(Finance) S. Balakrishna indicated that the government was considering
the plea to release 95 per cent of profession tax collected to the tune
of Rs. 150 crore as against Rs. 50 crore given this year. Ten per cent
of motor vehicle tax collected or Rs.50 crore is also expected as per
the Second Finance Commission recommendations as against Rs. 65 lakh
this year.

Ms. Reddy said special focus would be on housing for
poor and slum improvement programmes with an outlay of Rs. 1,069.09
crore. Revenues are expected from property tax collection – Rs. 653
crore (Rs.591 cr), advt. fee – Rs. 35 crore (Rs.31.5 crore), trade
licensing fee – Rs. 60 crore (Rs.33.9 crore), surcharge on stamp duty –
Rs. 210 crore and entertainment tax – Rs. 38.35 crore.