The Times of India           01.12.2010

BBMP must mobilize Rs 7000 cr in 4 months

BANGALORE: BBMP is trapped in financial quicksand of monumental proportions -- it has to garner Rs 7002 crore over four months to meet the budget target of Rs 8446 crore. At the end of eight months of fiscal 2010-11, BBMP was supposed to mobilize Rs 5,920 crore, but has managed only Rs 1,444 crore.

So, we can bid goodbye to any meaningful civic works because the civic administration can fall back on its perennial excuse of no resources. The recent BBMP council decided to start with all programme works for all 198 wards in the beginning of December by calling for tenders. But with no cash in its treasury, corporators will have to wait for the much-promised grants.

As for revenue collection, BBMP so far has got Rs 620 crore against the expected Rs 2,414 crore. From ads and hoardings, BBMP expected Rs 120 crore but got only Rs 2.91 crore.

The budget further expected an irregularity fine of Rs 750 crore from Akrama-Sakrama. But the bill was rejected by the governor and the scheme is still awaiting his nod. Thus the dream of budget-makers to mop up revenue by correcting construction irregularities is still a distant dream.

On Tuesday, opposition party leader M Nagaraj wrote a letter to the BBMP commissioner seeking the palike's action plan on how to tackle the financial crunch. "In the absence of elected representatives in the BBMP, there were a series of misappropriations and scams which have led to revenue loss."

Budgetmaker speaks

"As of now, the BBMP's financial condition is not so healthy. We plan to strengthen it. Besides, we're expecting the chief minister to take part in the December council meeting, when he will announce the special grant of Rs 1300 crore," said PN Sadashiva, chairman of the tax and finance standing committee. Exactly a year ago, BBMP borrowed Rs 1,000 crore from three nationalized banks and the liabilities on loan repayment is Rs 592 crore for the year 2009-10.

BBMP's liabilities

Loan repayment -- Rs 592 cr

Ongoing works -- Rs 2244 cr

Pending bills -- Rs 1,700 cr