The Deccan Herald  31.08.2010

Rs 8400 cr Bangalore budget focuses on city infrastructure

Bangalore, Aug 30 (IANS):

Seven multi-level parking slots, white topping (cement coat) for main avenues, tree parks, fencing of major open drainages are among the plans to improve the tech hub envisaged in the Rs 8,488 crore 2010-11 budget of the Bangalore civic body.

The budget makes it mandatory for all Information Technology firms to set E-waste disposal facility. In the first budget presented by the Bharatiya Janata Party-ruled Bruhat Bengaluru Mahanagar Palike (Greater Bangalore City Corporation), no tax has been levied on the Bangaloreans.

This is also the first budget of the BBMP, formed after incorporating several areas into the city. Earlier the civic body was known as Bangalore City Corporation. Among the populist measures are free distribution of 20,000 cycles to the poor self-employed and labourers, P. N. Sadahiva, chairman of BBMP's tax and expenditure committee, said presenting the budget to the 198-member civic body.

The budget promises building of several modern shopping complexes in the city. Elections to BBMP were held for the first time in March this year and BJP won 112 seats, with Congress getting 64 and Janata Dal-Secular managing just 15 seats. The rest were won by Independents.

BJP captured Bangalore, nearly two years after it came to power for the first time in Karnataka in May 2008.

The Deccan Herald  31.08.2010

Palike struggles to present surplus budget

Bangalore, Aug 30, DHNS:

Despite a poor revenue collection record and its financial kitty in disarray, the budgetary expectations of the Bruhat Bangalore Mahanagara Palike (BBMP) are once again riding high.

Financial planning: A view of the BBMP council during the budget session on Monday.  DH PhotoThat became clear on Monday as the BBMP presented a “surplus” Rs 8,497-crore budget for the 2010-11 fiscal, after a six-month delay. 

Although the BBMP could collect only Rs 821 crore from property tax, advertisement tax and trade licence fee in 2009-10, marginally better than the Rs 753 crore accrued in 2008-09, its latest budget expects to raise Rs 3,279 crore this year.

The budget had to be “surplus” because the Karnataka Municipal Corporation Act, 1976, rules out a deficit one. The BBMP says it will ensure a surplus budget by borrowing heavily from financial institutions.

For the ruling BJP, it was the first opportunity to present what it described as a “people-friendly” budget. That the BBMP had only Rs 424 crore in its coffers was another matter. Besides loans, the BBMP is also banking high on the grants from the State and Central governments.

The budget, presented by chairman of the Taxation and Finance Committee PN Sadashiva, has also high revenue expectations from the Akrama-Sakrama scheme, if and when it is implemented.

The newly adopted global information system is expected to help the BBMP identify much more taxable assets and thus meet the higher target set for this fiscal. 

There were obvious voices from the Opposition asking how the Palike would manage its expenditures if the anticipated revenues do not fill the BBMP coffers. But Sadashiva said “the government will provide us with the funds if there is a shortfall.” While no new taxes were recommended, special development charges are to be levied on high value assets and on those who erect towers and dish antennae for commercial purposes.

Infrastructure projects for the City will get a big boost. On the agenda are 10 parking bays, a detailed project report preparation for a signal free road from Yeshwanthpur Circle to Outer Ring Road (3.5 km), a flyover from Sirsi Circle to Nayandhalli, as many as 50 underpasses, remodelling of the Kalasipalya Bus Stand, improvement of footpaths and development of approach roads to the international airport.