The Hindu 03.10.2013
Improving own sources of revenue a major task for BMC
Mobilisation of own sources of revenue is the major task before new Mayor K. Madhavi and the newly elected body of the Berhampur Municipal Corporation (BMC).
Despite being a major urban body in the State and the city touted as a prime trading centre in South Odisha, the BMC has not been able to shore up its revenues significantly. On the contrary, revenue generation has started to decline.
As per the budget passed in March this year, 73 per cent of the income comes in the form State and Central grant-in-aid under different urban development schemes. This figure is put at Rs.9,800 lakh. The projected revenue generation during 2013-14 is put at only Rs.1,066 lakh. Out of this, revenue from various taxes is only Rs.500 lakh. An amount of Rs.209 lakh comes from rentals of various BMC properties. The BMC also gets Rs.207 lakh as trade licence fees and miscellaneous income is put at Rs.150 lakh.
Though the per capita income in the city has increased many folds in the past few years, the BMC has not been able to increase its income on par with it.
As per the 2001 census, the per capita income was Rs.325. It increased almost 10 times to Rs.3,025 in 2011.
As per a recent study, the growth rate of own income started to show a negative trend. The study undertaken by the Youth for Social Development (YSD) in 2001-02 showed that the income growth rate of the BMC was 17.4 per cent. But during 2013-14, the projected income growth rate has come down to - 3 per cent.
Trade licence fee
In the last few months, the BMC authorities have made some efforts to increase own revenue, which included checking pilferage of holding tax and non-collection of trade licence fee.
The BMC authorities have also found that 90 per cent of the trading units, shops, and business establishments are registered with the BMC and are not paying the annual trade licence fee.
Another means of increasing revenue would be increasing the holding tax, which has not been revised for the past many years.
But, as the Lok Sabha and Assembly elections are round the corner, it is unlikely the ruling BJD would take any decision on upward revision of holding tax.
