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Financial Management

‘Budget proposals will spill over into 2011’

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The Deccan Herald  04.09.2010

‘Budget proposals will spill over into 2011’

Bangalore, September 3, DHNS:

Will the Rs 8,497 crore Bruhat Bangalore Mahanagara Palike (BBMP) Budget 2010-11 be implemented this financial year at all? Not if senior Congress corporator Gunashekar's arguments are to be believed.

 

 

 

 

 

 

 

 

At the budget session of the BBMP Council, Gunashekar argued that with only six months left out of the financial year, the Rs 8,497-crore Budget may not be implemented completely. Projects worth thousands of crores of rupees are very likely to spill over into the next financial year.

“With projects worth Rs 8,500 crore proposed in it, the Budget will go to the State Government for approval. According to the Karnataka Municipal Corporation (KMC) Act of 1976, the Government can withhold the budget for two months without assigning reasons,” he stated.

If the Budget is passed without clarifications sought, BBMP will start issuing work codes for the next 15 days and then call for tenders. “Where is the time for the BBMP to implement all the proposed projects in such a short time frame when half the year is over?” he questioned.

In his hour-long argument, the three-time corporator from Jayamahal said the ruling party had misled the people by presenting an “inflated” budget and not considered the time frame at its disposal. “By the beginning of the next financial year, the Budget will cross the Rs 12,000-crore mark and add further pressure on the BBMP to deliver,” he said.

He recalled that infrastructure projects worth over Rs 1,000 crore mentioned in the Budget for this financial year, which were part of the “midnight tender” controversy that is currently being heard at the High Court.

“What happens if the tender process is scrapped? The entire Rs 1,000-crore project which includes the construction of signal-free corridors, the backbone of your budget will have to be revised or dropped for the year,” he said. The Congress leader hoped that the Mayor, Chairman of the Standing Committee on Taxation and Finance will consider his case and present a fresh budget that is more “realistic”.

On the other side of the aisle, B R Nanjundappa (BJP) appreciated the Budget and hoped that some of the pilot projects will be spread across the City. “With regard to the LED lights to be tested in two wards, we corporators hope that each road from every ward will be given an opportunity to test the lamps,” he said.

He also appealed for an increased allocation for burial grounds in the City which needed at least four vans per crematorium, Nanjundappa said.

The senior BJP leader also expected the Mayor to issue an order towards including all caste and religion living in the slums to be given the title deeds.

Last Updated on Saturday, 04 September 2010 10:39
 

Send back budget to standing committee: councillors

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The Hindu 04.09.2010

Send back budget to standing committee: councillors

Staff Reporter

Bangalore: The common refrain during the second day of the discussions in the Bruhat Bangalore Mahanagara Palike Council on Friday was once again for the budget being sent back to the Standing Committee on Taxation and Finance and then re-presented.

Janata Dal (S) Floor Leader Padmanabha Reddy said that the State Government must pay the huge, pending loans of the BBMP. “The civic authority availed itself of loans amounting to Rs. 2,600 crore during the Administrator's period. The elected representatives are not responsible for it. Hence, the Government must repay it. Also, all the works executed during that period must be investigated by the Lokayukta or a council committee,” he said.

Mr. Reddy also said that 75 per cent of the State's revenue came from the city, yet the BBMP got only Rs. 300-crore grant. He suggested that after getting a report from the Finance Department, the BBMP might seek more funds from the State Finance Commission.

N.K. Gunashekar, Jayamahal councillor, charged that the budget lacked transparency as it was presented without being discussed in the other standing committees, which still have not been formed as required under Section 6 of the KMC Act, 1976.

He said that as per the Act, the civic authority is obligated to present the budget estimates three weeks before the end of the financial year.

“Even if this budget is approved, the BBMP will not be able to implement it,” he said

Last Updated on Saturday, 04 September 2010 09:37
 

BBMP loan, liability for citizens?

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The Deccan Chronicle  04.09.2010

BBMP loan, liability for citizens?

Bengaluru, Sept. 3: With BBMP planning to take a Rs 1,890 crore loan, an average property tax-payer will end up with a liability of nearly Rs 48,000, said JD(S) leader in the BBMP council Padmanabha Reddy on Friday.

Participating in the budget discussion on Friday, he said there were 10 lakh property tax-payers in the city. At present, BBMP has an outstanding of around Rs 2,500 crore.

During the administrator’s rule, BBMP’s financial position has become delicate and either a Lokayukta inquiry should be instituted or a council committee formed to look into the same, he said.

“The only achievement is taking a loan of Rs 2,600 crore and presenting a few magic box underpasses. The projects presented in the budget are nothing but duplication of the previous budget with a few changes. It has to be sent back to the BBMP finance committee and presented again with changes,” he said. There was a need for more flyovers, underpasses and other civic amenities in the city which have been ignored, he added.

BBMP chief accounts officer must explain how actual is the revenue expected and proposed expenditure for improvement of the city.

Taking a dig at the bus shelter in the city he said advertisement agencies must build one bus shelter in newly added areas for every two bus stands in core areas.

Last Updated on Saturday, 04 September 2010 05:48
 


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