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.