The Hindu 13.12.2010
Corporation facing financial crisis
Staff Reporter
| Plans to step up revenue collection |
Needs at least Rs.5 crore this month to give salary
Owes Rs.15 crore
to contractors
KOCHI: With the plummeting revenue collection and increasing expenses, the Kochi Corporation is heading for a financial crisis. The crisis has reached a critical stage where the corporation is finding it difficult even to raise money for disbursing the salary of its employees. This month, the civic body will have to find resources for paying the salary of December and advance salary for the month of January. Each month, the corporation requires around Rs.2.5 crore for paying salaries. A similar situation arises during Onam also, when the civic body will have to find resources for paying two salaries in a month. This month, the corporation will have to raise at least Rs.5 crore for clearing the salary bills alone.
The contractors of the civic body are also understood to have stepped up pressure for getting the bills of the completed works cleared. Going by rough estimates, the corporation owes the contractors something around Rs.15 crore.
The corporation is not in a position to fully clear the pending bills of the contractors. Instead, funds will be released to the contractors in a phased manner and in tune with the financial position of the civic body. The average daily revenue earnings of the corporation is around Rs.12 lakh, which according to the civic administrators, is quite low. The own funds of the civic body has also been exhausted. A large number of tax payers seemed to have developed slackness in paying the bills, postponing the payments to March, which might have reflected on the revenue collection, said a civic administrator.
Considering the gravity of the situation, the civic authorities are planning to convene a meeting of the officials of the Revenue Department this week. The Revenue Inspectors would be directed to intensify the revenue collection, he said.
At the same time, the corporation is also exploring the option of seeking financial assistance from the Finance Minister. The civic administrators have plans to apprise the Finance Minister of the grave financial situation.
