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Financial Management

BMC keeps fist tight

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Hindustan Times 04.02.2010

BMC keeps fist tight

The finance crunch that the Brihanmumbai Municipal Corporation (BMC) is going through reflected in the disappointing budget for the fiscal year 2010-2011.

The budget was unveiled on Wednesday.

No new projects will be undertaken and a few projects such as concretising of roads, reconstruction of hospitals and underground parking lots at Crawford Market have been postponed.

The Mumbai Eye — to be built on the lines of London Eye -— does not find a mention in the list of projects planned for this year.

The budget of Rs 20,417 crore has shown an increase of merely 4 per cent in comparison to last year’s budget.

The BMC managed this increase by taking a loan of Rs 6,000 crore to compensate for the dip in octroi revenue and the increased burden of salaries revised salaries according to the Sixth Pay Commission.

The only highlight of the budget is the priority given to water supply augmentation projects with Rs 2,721 crore allotted to them.

This money will go towards projects such as the Gargai dam, replacement of old water mains and the ambitious Middle Vaitarna dam, which promises an additional 455 million litres of water every day.

The main reason for the BMC’s revenue crunch is the dip in octroi revenue by 10 per cent due to the economic slowdown.

Octroi and property tax are the BMC’s prime revenue-generating tools and contribute almost one-fifth of the annual civic budget.

Implementation of the Sixth Pay Commission this year has also increased the burden on the civic body’s annual revenue expenditure by Rs 1,800 crore.

“I have requested the head of the Departments to cut down on expenses which are unnecessary and to see to it that projects which are approved are completed without an increase in their costs,” said Municipal Commissioner Swadheen Kshatriya.

Kshatriya said the BMC is contemplating an increase in octroi charges and considering undertaking pay scale revisions — according to the Sixth Pay Commission — once every 10 years instead of five.

 

Budget estimates raised by Rs 39 crore

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The Times of India 04.02.2010

Budget estimates raised by Rs 39 crore

SURAT: After three days of discussions, the Standing Committee of Surat Municipal Corporation (SMC) on Thursday revised the budget to Rs 2,434 crore, which showed a 15 per cent increase in the proposed draft budget of Rs 2,395 crore earlier presented by municipal commissioner.

The capital expenditure that was pegged at Rs 1,349 crore in the draft budget has been raised to Rs 1,383 crore. The ruling BJP has made special allocations of Rs 50 lakh for the development of Dumas Chopati and Rs 20 lakh for Ovara, allotted special fund of Rs 20 lakh for the preservation and maintenance of poet Narmad's house at Amliran area of the city and increased the grant of local corporators by Rs 1 lakh except that of central zone area elected representatives. These provisions have been made as part of Swarnim Gujarat celebration. Under the same head, a special grant of Rs 50 lakh has been made for moratoriums and Rs 10 lakh each for libraries and public urinals in every zone.

The rebate on the tax paid by senior citizens on their property has also been increased by five per cent. Token allocations have been made for projects being undertaken on PPP basis like foot overbridge constructions with escalators, laser show and I-Max theatre and aquarium tunnel project.

An allocation of Rs 10 lakh has been made for Shantikunj parks for senior citizens in every zone of the city.
The Standing Committee chairman also additionally allocated Rs 1 crore for road re-carpeting in all zones, Rs 2 crore for new ACC roads, Rs 50 lakh for new integrated Gaurav Path in Adajan, Rs 1 crore for setting up swimming pools in Pandesara, Bhatar, Kosad and Rander and Rs 20 lakh for the view tower.

Mukesh Dalal, chairman, standing committee, said, "This reflects the ambitions and wishes of people of Surat. We have tried to focus on basic issues and also on infrastructure development."

 

Rs 21,000-crore civic budget has good news and bad

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Hindustan Times 02.02.2010

Rs 21,000-crore civic budget has good news and bad

The good news is that the upcoming civic budget will have no new taxes and no hikes in existing taxes. The bad news is that no new projects will be undertaken in the next year.

The country’s largest municipality, the Brihanmumbai Municipal Corporation (BMC), will have a budget of around Rs 21,000 crore. Completing ongoing projects will be top priority during the next fiscal year, with most of them to be handled on both, Build-Operate-Transfer and Public-Private-Partnership basis.

The budget will be presented on Wednesday before the Standing Committee, whose chairman Ravindra Waikar said: “No new taxes will be imposed in the next fiscal budget. It will be a surplus budget.”

Municipal Commissioner Swadheen Kshatriya said: “We will unveil the budget in two days”. For roads, bridges and traffic signals, the BMC has allocated around Rs 900 crore, against last year’s provision of Rs 1,321 crore. Around 400 crore has been allocated to the concretisation of roads, and another Rs 500 crore for asphalting.

With the water crisis looming large over the city, the BMC has increased its budget provision for the water department.

Construction of the Middle Vaitarna Dam will be top priority. The BMC is planning to improve water distribution within the city — more than Rs 100 crore will be used to repair existing water mains.

A total of Rs 72 crore will be allocated for rainwater harvesting projects, while Rs 67 crore is being provisioned for construction of borewells. Sources said with only 40 per cent of the capital budget being spent this year, the rest 60 per cent will be reflected in the 2010-11 budget.

Last Updated on Tuesday, 02 February 2010 12:08
 


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