Deccan Chronicle 12.01.2010
Cash crunch to hit civic work
Jan. 11: While Bruhat Bengaluru Mahanagara Palike (BBMP) has planned infrastructure projects worth Rs 22,000 crore for the city over the next three years, its revenue collection has nosedived, which could make it difficult for it to raise the funds required to see them through. The civic agency had expected a revenue of at least Rs 1,000 crore from property tax to fund its mega city projects, but it has been able to mop up only around Rs 645 crore till January and can hope for only another Rs 200 crore by March, according to official sources.
Its revenue from advertisements too has fallen drastically as a result of the recession. Its losses are estimated at nearly Rs 60 crore from advertisements in 2009-10.
BBMP additional commissioner (health and advertisement), Govindaraj agrees the recession has impacted BBMP’s advertisement revenue.
“The company which was interested in advertising on bus shelters in the city has backed out. Also, there are not many takers for our hoardings,” he says, however, adding that the advertisement revenue has been picking up over the last couple of months.
While BBMP had great expectations from the Sakrama Scheme and hoped to gain a revenue of around Rs 5,000 crore from it, the scheme is unlikely to take off in the near future, with its council elections round the corner.
“The government is certainly not going to collect a Sakrama penalty from the people when it is banking on their votes in these elections,” say sources.
