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Financial Management

BBMP makes bruhat plans

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The New Indian Express  31.08.2010

BBMP makes bruhat plans

BANGALORE: After much delay and dodging, an ambitious Bruhat Bangalore Mahanagara Palike budget was presented on Monday. Presenting the Rs 8,488 crore budget, chairman of the Finance and Taxation committee, P N Sadashiva, announced grandiose development and welfare plans for the city and hoped to fund them with additional commercial taxes.

He promised parking malls, business complexes, signal free corridors and traffic management centres to decongest the city's roads.

And with a bigger Bangalore with more wards, Sadashiva announced Rs 2 crore to old wards and Rs 3 crore for new wards and nearly Rs 30 crore for setting up ward offices in new wards.

The longpending remodelling of the Kalasipalyam bus station will be taken up at a cost of Rs 226 crore in a joint venture with the BMTC.

Welfare schemes, expectedly, got a substantial allocation. While public health engineering got Rs 244 crore, other health schemes were given Rs 91.83 crore. Generous doles for welfare activities for women and SC/STs amounting to more than Rs 620 crore and Rs 47.75 crore for education made up a long list of sops. The city's sports and culture would receive a Rs 55.33 crore push.

And to preserve and restore the city's greenery and lakes, Sadashiva announced Rs 39 crore for forestry and Rs10 crore for the development of tree parks and `98 crore for lake development.

He stated that various developmental works worth Rs 550 crore would be undertaken in all wards of the city.

Optimistic that he would be able raise the resources for these plans, Sadashiva said the AkramaSakrama scheme would generate Rs 750 crore in the given year and property tax expectations would be around Rs 1,500 crore. He said that the adoption of Unit Area Value (UAV) system as the basis for assessment of tax had yielded good results. Stressing on the inclusion of nearly 56 lakh properties under the tax net, he justified the expectations of property tax.

He also announced an advertisement tax that would potentially fetch the palike more than Rs 100 crore.

Other notable allocations included the Rs 40 crore for the approach road to airport road and Rs 44 crore for widening of Bellary and Jayamahal Roads up to Mekhri Circle.

Last Updated on Tuesday, 31 August 2010 09:53
 

BBMP budget: More promises?

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The Deccan Chronicle  31.08.2010

BBMP budget: More promises?

Bengaluru, Aug. 30: The much delayed BBMP Budget for 2010-11 was presented on Monday, nearly five months after the new BBMP council came into being, giving priority to solving the city’s parking problems and improving its civic amenities without burdening the people with additional taxes. While the cash-strapped BBMP has not announced major projects, it has given a thrust to development of roads, drains, footpaths, grade separators and traffic management.

True to Chief Minister B.S. Yeddyurappa’s promise to give the city more concrete roads, the Budget has set aside Rs 25 crore for white topping major roads over 30 km in a first phase of the project. Roads to the Bengaluru International Airport are in for a makeover at a cost of Rs 40 crore, and footpaths across the city are expected to be modernised at a cost of Rs 20 crore. Building of seven signal-free corridors has received Rs 1,000 crore. Interestingly, elevated steel bridges and underground tunnels are in the offing to ease traffic conditions in the city.

Presenting the Budget, BBMP chairman, taxation and finance P.N. Sadashiva said 20 multi-level parking lots have been planned in association with BDA, which will be built under a public private partnership near Freedom Park, Gandhi Bazaar Main Road, near Garuda Mall and the Jayanagar Shopping Complex among other places.

An underground tunnel will be built between Majestic to the City Market and from Majestic to Okalipuram, an elevated steel bridge will be constructed between Minerva Circle and Hudson Circle. Both projects will cost Rs 6 crore to complete.

The city may see better garbage management in future as a solid waste programme spread over five years has been announced at a cost of Rs 200 crore. Also, new parks will be developed and old parks will reportedly see better upkeep, all at a cost of Rs 159 crore. A sum of Rs 97.97 crore has been set aside for giving lakes a facelift.

A mosquito control programme, distribution of free health kits to pregnant women and upgradation of hospitals also find mention in the Budget.

As far as education goes, faculty of BBMP schools will receive special training and extra classes will be held for students. A Sahitya Bhavana has been planned at a cost of Rs 1.5 crore.

BBMP is going tech savvy and plans to do online registration of deaths and births and also introduce an automated building plan approval system.

The Malleswaram and Jayanagar shopping complexes are in for a new look as is the Kalasipalyam bus station. Commercial complexes with parking facility have been planned for Gandhi Bazaar and Johnson Market.

Last Updated on Tuesday, 31 August 2010 07:58
 

BBMP bumps up city budget

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The Deccan Chronicle  31.08.2010

BBMP bumps up city budget

Bengaluru, Aug. 30: The recently elected BBMP council presented its maiden budget for the city, and its biggest ever on Monday. The total outlay is at ` 8,488.54 crore for the year 2010-11 with priority being given to road infrastructure and traffic management.

But what will these astronomical figures translate into? The civic authority is spending close to ` 600 cr to service debts, while borrowing an additional ` 1,890 crore this year.

The BBMP, neck-deep in debt to the tune of over ` 2,562 crore to various financial institutions, is also banking on non-tax revenue and state and central grants, and the controversial akrama-sakrama scheme to pay for the long list of BBMP’s projects in the pipeline.

Clearly, the jaw-dropping list of fancy infrastructure projects is not likely to see the light of the day, and will go the way of similar projects announced in previous budgets.

Comparing the BBMP’s receipts between last year and present year proves beyond doubt that the BBMP has presented inflated revenue earnings and is pulling the wool over the people’s eyes by projecting a whopping ` 8,488.54 crore.

The BBMP had anticipated tax and non tax revenue of ` 1,716 crore last year while presenting a budget with an outlay of ` 4,238.41 crore.

But the authority was able to collect only around Rs 1,000 crore which prompted them to go for additional loans of Rs 782 crore to fill the gap.

This year too, it continues to make projections that are based on unrealistic expectations. For instance, the BBMP is expecting grants amounting to Rs 2,020.69 crore — Rs 195 crore from JNNURM, Rs 406.69 crore from the State Finance Corporation, Rs 1,300 crore as special grants from the government and Rs 122 crore special grants from the 13th Finance Commission.

The BBMP is also counting heavily on the Rs 750 crore to be collected from Sakrama scheme. The Bill, which has been passed by both the legislative assembly and council is in limbo as Governor H. R. Bhardwaj has objected to the proposal.

For additional revenue mobilisation, the civic authority plans to levy special development fee on high-value assessment properties, tax on heavy commercial vehicles, fee on towers and dish antenna erected for commercial purpose, and annual fee on private electrical transformers installed on BBMP or government properties.

But questions remain over how much money can realistically be generated from these schemes.

Last Updated on Tuesday, 31 August 2010 07:56
 


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