Urban News

  • Increase font size
  • Default font size
  • Decrease font size
Municipal Finance

Local bodies utilise only 32% of funds

Print PDF

The Hindu 01.02.2010

Local bodies utilise only 32% of funds

N.J. Nair

Bureaucratic apathy cited as reason

 


Corporations recorded lowest absorption rate

Shortage of technical staff hampered projects


THIRUVANANTHAPURAM: The average fund absorption rate of local self-government institutions in the State for the financial year 2009-10 has been pegged at 31.89 per cent.

According to the annual expenditure review, the civic bodies could spent only Rs.665.15 crore out of the Rs.2,085.13 crore provided to them till December 31, 2009. Corporations recorded the lowest absorption rate. They could make use of only Rs.23.05 crore of the total allocation of Rs.144.17 crore.

The 53 municipalities expended only Rs.46.48 crore of the Rs.177.07 crore left at their disposal. Out of the annual allocation of Rs.277.33 crore, the14 district panchayats utilised Rs.96.81 crore. The 152 block panchayats spent only Rs.111.75 crore of the Rs.272.64 crore allocated during the period and the grama panchayats only Rs.387.06 crore of the assigned funds of Rs.1,213 crore.

As per the quarterly target set by the State government, the civic bodies should spend 10 per cent funds by June 30, and 40 per cent by September 30 so that the expenditure would be 70 per cent by December 31 and 100 per cent by March 31. Going by this target, there was already a shortfall of about 60 per cent in the expenditure rate.

Though bureaucratic apathy had been cited as one of the reasons for the poor disbursement, paucity of engineering staff in the civic bodies was also understood to have upset the plans for completing a number of projects within the stipulated time. Following the devolution of funds and powers, civic bodies had to simultaneously execute a number of civil works every year. Paucity of technical staff often delayed the formalities for making the payment of the completed works. This had reflected in the payment registers too.

Stringent guidelines laid by the government to weed out corruption in fund utilisation had made the elected members and officials to tread cautiously. Along with that, lopsided priorities in preparing projects, political considerations in apportioning the funds among the elected members and the inordinate delay in commencing the works on time had also contributed to the low utilisation rate. The EMS Housing Scheme was one of the major projects entrusted with the civic bodies. The setback in preparing the list of beneficiaries had a telling impact on the utilisation levels.

Last Updated on Monday, 01 February 2010 01:50
 

Rs 1,657-cr demand to Centre, as aid for Mithi

Print PDF

Indian Express 21.01.2010

Rs 1,657-cr demand to Centre, as aid for Mithi

The Mumbai Metropolitan Region Development Authority (MMRDA) and the Brihanmumbai Municipal Corporation (BMC) have approached the Union Urban Development Ministry once again for financial assistance to the Mithi river rejuvenation project.

The joint proposal was sent to the Ministry in the last week of December. The demand is for Rs 1,657.11 crore: over Rs 1,200 crore for the BMC and the rest for the MMRDA.

After the deluge in July 2005, the MMRDA and the BMC started work on widening and deepening the river, which forms the main rainwater drainage system in the suburbs. Apart from widening and deepening, the second phase will involve building a retaining wall and service road along the banks of the river.

The state too has approached the Centre for funds. “But the Centre had refused funds under the urban renewal project because of the question whether the Mithi is a river or a drain,” said an MMRDA officer. “We have now asked for funds under Additional Central Assistance (ACA),” said Uma Adusumili, project director, Mithi River Development and Protection Authority.

Of the 17.4-km stretch, 11 km is under the BMC’s control and 6 km under MMRDA, with 400 metres under the Airports Authority of India.

The MMRDA has completed 97 per cent of the deepening work and 72 per cent of the widening work so far, while the BMC has completed 64 per cent of its share, with half-a-metre’s deepening work remaining. On the retaining wall, both agencies have completed 37 per cent of the work. “For the service roads tenders have been floated and work should start soon,” said an official.

Sources said the BMC plans to shelve the idea of an additional drain or nullah, to deviate the flow under the airport runway. The section under the runway varies in width between 27 and 40 metres as compared to the ideal, uniform width of 60 metres. “We thought a nullah would help, but it cannot be as there are legal structures on the spot,” said a BMC official.

Earlier this month, Chief Secretary J P Dange met Municipal Commissioner Swadhin Kshatriya, Metropolitan Commissioner Ratnakar Gaikwad and Mumbai International Airport Limited officials, who were asked to study how the river section on the premises and the culvert under the runway can be widened without disturbing runway activities.

The MMRDA has appointed a consultant for Environment Ministry clearance to river widening from the patch between Mahim Causeway and Dharavi Bridge. “A patch of mangroves needs to be removed,” the official said.

Last Updated on Thursday, 21 January 2010 11:29
 

Cash-strapped MCD provides ‘discretionary’ funds for Games

Print PDF

Indian Express 21.01.2010

Cash-strapped MCD provides ‘discretionary’ funds for Games

The cash-strapped Municipal Corporation of Delhi (MCD) has now passed a new resolution — to provide discretionary funds ranging between Rs 1 crore and Rs 3 crore to various members of its deliberative wing.

At a time when the civic agency has been facing issues of “irregular cash flow and low revenue generation”, the MCD Standing Committee on Wednesday approved a budgetary amendment under which the Leader of the MCD House will be allocated a sum of Rs 3 crore, while the Leader of Opposition will be allocated Rs 1 crore as part of the discretionary fund in the new fiscal year.

Besides, the chairperson of the MCD’s Education committee has been sanctioned Rs 2 crore, while the chairpersons of the Garden committee, the Health committee and the department of environment management services will be given Rs 1 crore each.

Such funds for these members have been sanctioned for the first time since MCD was constituted. The amount will be allocated from MCD’s non-planned expenditure.

The Standing Committee has also decided to increase the allocation for the chairpersons of all ward committees across the 12 zones from Rs 25 lakh to Rs 50 lakh.

According to the Standing Committee chairperson R K Singhal, there was need for an amendment in the minutes of the new budget to make way for the “new financial allocation” for “massive development work currently on for the Commonwealth Games”.

These members will now have funds at their disposal to help councillors who face problems in carrying out any development work. Councillors are facing fund issues while carrying out work in their areas, especially considering that a lot of development work is in progress for the Commonwealth Games,” Singhal said. He added such a sanction is provided for in the Delhi Municipal Act, 1957.

MCD Leader of the House Subhash Arya said the new allocation will be used in cases of emergency. “The money will be used for development works across the city,” he said.

The MCD already provides such allocations under ‘discretionary funds’ — Rs 6 crore and Rs 5 crore for the Mayor and the Standing Committee chairperson respectively.

Who gets what
Leader of the MCD House Rs 3 crore
Leader of Opposition Rs 1 crore
Chairperson of the MCD’s Education committee Rs 2 crore
Chairpersons of Garden, Health committees and DEMS will each get Rs 1 crore
Chairpersons of all ward committees to now get Rs 50 lakh

Last Updated on Thursday, 21 January 2010 11:10
 


Page 57 of 65