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Financial Management

BBMP must mobilize Rs 7000 cr in 4 months

Wednesday, 01 December 2010 09:33 administrator
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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

 

PCMC standing committee asks for revised budget

Monday, 22 November 2010 09:55 administrator
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The Times of India                 22.11.2010

PCMC standing committee asks for revised budget

PUNE: The standing committee of the Pimpri-Chinchwad Municipal Corporation (PCMC) has asked the civic administration to prepare a revised budget by the first week of December, which will be approved in next month's general body meeting.

"If a provision for a project in a ward is made in the annual budget, but the corporator concerned wants to implement another project in its place, then the money allocated for that project can be transferred to the new project through a revised budget," said Prashant Shitole, chairman of the standing committee.

According to Babu Nair, member of the standing committee, "The civic administration should present a revised budget for 2010-11 considering the additional octroi income in the past six months. The revised budget should contain revised expenditure, based on revised income."

At the standing committee meeting, Nair sought information about the pending bills that the PCMC has to pay contractors till March 31, 2011. Shitole said that, according to civic officials, outstanding bills of Rs 40 to Rs 50 crore were cleared by Diwali and there were no outstanding bills to be paid.

He added that the committee also sought information from the civic administration about pending projects and projects affected by the election code of conduct. Shitole said, "Discussions were also held about the octroi income from gold. There are 450 jewellery shops in the municipal limits, but only 225 to 250 are members of the jewellers' association. The PCMC gets only Rs 15 lakh as octroi from the jewellers but we expect to get at least Rs 10 crore."


 

Committee to look into money matters of Palike

Thursday, 18 November 2010 10:50 administrator
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The New Indian Express  18.11.2010

Committee to look into money matters of Palike

 

 

 

 

 

BANGALORE,: Every city depends on its civic body to provide amenities to the public. But the most essential part of fulfilling the needs of the people is to have funds and be able to disperse it efficiently for the development of the city.

The Taxation and Finance Committee of the Bruhat Bengaluru Mahanagara Palike has this burden.

They are responsible for all matters related to funds in the Palike. Chairman of the committee P N Sadashiva said theirs was the “supreme committee” as it had to deal with all other committees.

He said the main functions would be to present the budget, taxes and manage the finances of the Palike. Sadashiva had presented the first-ever budget of the BBMP, which was worth `8,848 crore.

He said all matters, of any nature, had to be approved by the committee before being tabled in the council.

Sadashiva said revenue generation would be their main aim.

He said they would explore new avenues to generate funds and reduce loss.

Sharing the problems of the Palike in matters of finances, he said there were many discrepancies in the absence of the elected representatives and that he had reviewed the same.

“We will keep every official and all the finances under check”, he said.

Also sharing the other problems of the committee, he said there were many works that required urgent funds and there was no provision for the same in the Palike.

Sharing the plans for the committee during the remaining part of the term, he said they would tax all violators of laws so that the burden of tax is distributed equally among the citizens.

“There are many IT buildings, MNCs, apartments and other big buildings that have not paid their taxes and we will ensure that they pay their dues to the Palike”, he said.

Last Updated on Thursday, 18 November 2010 10:53
 
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