Urban News

The Deccan Chronicle  31.08.2010

Bengaluru, Aug. 30: The recently elected BBMP council presented its maiden budget for the city, and its biggest ever on Monday. The total outlay is at ` 8,488.54 crore for the year 2010-11 with priority being given to road infrastructure and traffic management.

But what will these astronomical figures translate into? The civic authority is spending close to ` 600 cr to service debts, while borrowing an additional ` 1,890 crore this year.

The BBMP, neck-deep in debt to the tune of over ` 2,562 crore to various financial institutions, is also banking on non-tax revenue and state and central grants, and the controversial akrama-sakrama scheme to pay for the long list of BBMP’s projects in the pipeline.

Clearly, the jaw-dropping list of fancy infrastructure projects is not likely to see the light of the day, and will go the way of similar projects announced in previous budgets.

Comparing the BBMP’s receipts between last year and present year proves beyond doubt that the BBMP has presented inflated revenue earnings and is pulling the wool over the people’s eyes by projecting a whopping ` 8,488.54 crore.

The BBMP had anticipated tax and non tax revenue of ` 1,716 crore last year while presenting a budget with an outlay of ` 4,238.41 crore.

But the authority was able to collect only around Rs 1,000 crore which prompted them to go for additional loans of Rs 782 crore to fill the gap.

This year too, it continues to make projections that are based on unrealistic expectations. For instance, the BBMP is expecting grants amounting to Rs 2,020.69 crore — Rs 195 crore from JNNURM, Rs 406.69 crore from the State Finance Corporation, Rs 1,300 crore as special grants from the government and Rs 122 crore special grants from the 13th Finance Commission.

The BBMP is also counting heavily on the Rs 750 crore to be collected from Sakrama scheme. The Bill, which has been passed by both the legislative assembly and council is in limbo as Governor H. R. Bhardwaj has objected to the proposal.

For additional revenue mobilisation, the civic authority plans to levy special development fee on high-value assessment properties, tax on heavy commercial vehicles, fee on towers and dish antenna erected for commercial purpose, and annual fee on private electrical transformers installed on BBMP or government properties.

But questions remain over how much money can realistically be generated from these schemes.