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Financial Management

Budget triggers uproar

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The Deccan Herald  03.09.2010

Budget triggers uproar

Bangalore, September 2, DHNS:

The Bruhat Bangalore Mahanagara Palike (BBMP) Council was in uproar on Thursday when the Leader of the Opposition M Nagaraj dismissed the Rs 8,497-crore budget 2010-11 as a ''bogus'', ''deficit'' budget and asked the Mayor to refer it to the Standing Committee.

 

 

 

 

 

 

On the first day of the discussion on the budget, the Council witnessed caustic exchanges between the Ruling and the Opposition benches over the budget proposals presented on Monday.

In his marathon, three and a half hour long speech, Nagaraj said the budget was “inflated” as it was to be funded with loans from financial institutions.

“Take a look at the revenue generated from the same taxes in the year 2009-10. There is a huge inflation in the expectations of the ruling party from the avenues of receipts,” he said.

Nagaraj argued that revenue expected from property tax was Rs 795 crore in 2009-10  against the target of Rs 1,100 crore. “In the last five months, we have done a commendable job by raising Rs 790 crore from 10 lakh properties. But do you sincerely believe that the other 4.5 lakh properties will all pay up to the tune of Rs 1,000 crore in the next seven months,” he asked.

Even the Rs 100 crore expected from advertising revenue was a mere “dream” as the City had as many as 4,000 illegal hoardings with no action against them.

“Last year, the Palike got Rs 17 crore from advertising. I dare the ruling party to raise more than Rs 20 crore during the current financial year,” he said. 

Property recovery panel

However, the Opposition Congress welcomed the formation of Property Recovery Committee. On the budget proposal to auction BBMP properties, Nagaraj appealed to the Mayor to first safeguard parks and playgrounds which are under constant threat in such situations. He sought to know from the Commissioner and the Mayor the number of saplings planted in the City, in obvious reference to the proposal to plant five lakh saplings in the City.

On the lakes development project, the Congress termed the entire process of de-weeding and cleaning the lake as “unscientific” and asked the Mayor to recall all tenders given by the BBMP for the rejuvenation of 20 lakes. “With regard to the rest of the 163 lakes, why is the BBMP giving it to the BDA for rejuvenation? Are we not competent,” Nagaraj asked.

Meanwhile, Mallesh (Subhashnagar) said reserved funds for the welfare of Scheduled Caste and Scheduled Tribe had been carried forward repeatedly and suggested that funds from SC/ST schemes could be given to wards with more number of slums.

Thimmananjaiya (Peenya Industrial Area) wanted the five independent corporators to be given more funds.

Displaying the inferior quality shoes and bags given to students of the corporation school in his ward, he said SSLC students had not received social studies textbooks. “How will the quality of our schools improve when this is the case,” he questioned.

‘Increase ward level allocation’

Opposition leader M Nagaraj demanded an increase in the ward level allocations as made in the Budget 2010-11. As per the budget proposal each old ward was to get Rs 2 crore for its development and Rs 3 crore for the development of new wards.

Nagaraj demanded that they be revised with allocation of Rs 3.5 crore for old wards and Rs 5 crore for the new wards. “I speak on behalf of all the 198 corporators. We need the funds to carry out projects that will help in the development of the wards,” he said.

Last Updated on Friday, 03 September 2010 10:26
 

Opposition wants budget to be tabled again

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The New Indian Express  03.09.2010

Opposition wants budget to be tabled again

BBMP Council has a stormy session on Thursday, with the Opposition calling for a re-tabling of its budget.

BANGALORE: The Opposition members in the BBMP council on Thursday demanded a retabling of the Palike's budget. The said there were "many mistakes" in the budget presented on Monday.

Opposition Congress leader in the council M Nagaraj alleged that there were many discrepancies in the budget and that it lacked clarity on issues like revenue mobilisation.

He also wondered what was the need to allocate `5 crore for the dog menace.

"Do you think there are 1,000 dogs in each ward," he asked the Mayor S K Nataraj.

He was also critical of not allocating funds for development in wards represented by opposition corporators.

Nagaraj alleged that there was no understanding between the Mayor and BBMP Commissioner Siddaiah.

"The commissioner has put brakes on works worth thousands of crores and issued showcause notice to 84 engineers," he said.

He also took exception to not giving credit in budgetmaking to opposition Lok Sabha members including Union Law Minister M Veerappa Moily and former Chief Minister H D Kumaraswamy who represent Chikkaballapur and Bangalore rural respectively, and fall under the BBMP territorial limits.

''You have given credit only to the ruling party MPs and MLAs while leaving out the contributions of opposition members,'' Nagaraj alleged.

Ruling party leader Katte Satyanarayana, however, defended the budget as "progressvie" and added that Chief Minister B S Yeddyurappa had promised a special grant for the BBMP through which development works would be taken up.

He also said that schemes to collect taxes at the doorstep had been initiated on the lines of bills collected by the Bescom and BWSSB to improve revenue generation.

Besides this, the BBMP would mobilise additional revenue by plugging leakages in advertisement revenue and giving fresh leases of its properties at market rates.

Last Updated on Friday, 03 September 2010 09:41
 

Opposition to corner BJP on BBMP budget

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The Deccan Herald  02.09.2010

Opposition to corner BJP on BBMP budget

Bangalore, September 1, DHNS:

The Opposition parties have drawn up their battle plans to haul the ruling BJP over the coals at the Bruhat Bangalore Mahanagara Palike (BBMP) Council on the financial stability of the Palike to implement budgetary proposals.

With discussions beginning in the next two days on the budget, the Council is all set to witness arguments and heated debates on whether the Palike will be able to implement the Rs 8,500-crore budget proposals.

The Opposition leader M Nagaraj of the Congress will initiate the discussions on Thursday. He said that the party members are planning to challenge expenditure proposed in the current budget.

“The budget presented this year is nearly 100.12 per cent higher than the previous year. Where will the BBMP mobilise the resources from,” questioned Nagaraj.

The Congress is likely to target the BBMP for banking heavily on the State government grants. “They have stated in the budget that the State government will provide them with grants upto Rs 1,300 crore. Is there a written promise by the government,” he asked.

Accumulated loans

He also questioned the revenue generation capacity of the BBMP to present such an ‘unrealistic’ budget. Nagaraj stated that the BBMP could never generate more than Rs 1,400 crore in revenue in a financial year. The BBMP will require Rs 300 crore only to pay salaries.

“But the largest chunk of money (Rs 700 crore) will go towards payment of interest towards the already availed loans from various financial institutions. Now, they want to raise another loan of Rs 1,800 crore from banks and other agencies. It is really unfair,” he lamented.

“The ruling party was never in the budget-preparation mode. It had to present a budget that could please the citizens since it was presented after a five-month delay,” he said.
JD(S) leader Padmanabha Reddy also stated that the BJP’s hope of financial institutions coming to its rescue was impractical.

 “We already have a huge loan on our (BBMP) heads which will take at least 20 years to be cleared. They are now raising more loans to present this populist budget. This will take another 20 years to repay. Where is the BBMP heading” he questioned.

Last Updated on Thursday, 02 September 2010 11:19
 


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