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Civic chief's draft budget proposes 22% hike in taxes

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The Times of India 16.01.2010

Civic chief's draft budget proposes 22% hike in taxes

PUNE: Proposing a steep hike in taxes, municipal commissioner Mahesh Zagade on Friday tabled the draft municipal budget of Rs 2,910 crore for
approval of the standing committee. Zagade said a tax hike was imperative to generate funds to execute major development works worth Rs 1,634 crore.

Presenting his first draft budget as Pune municipal commissioner, Zagade proposed a 22% hike of taxes, including octroi taxes, road and fire cess, and doubling water charges.

"I have presented a realistic budget, based on actual possible income sources. If the proposed hike in taxes is rejected, the budget of Rs 2,910 will be reduced by Rs 377.87 crore. But, we need to remember that concrete steps are required if we want to strengthen the infrastructure and develop a city of international standards."

In 2009-10, the general body of the Pune Municipal Corporation (PMC) had approved the highest-ever budget of Rs 3,303.85 crore. However, the actual income of the civic body by December 2009 was just Rs 1,345.49 crore — of which Rs 1,157 has been utilised.

This year, Zagade said, the focus will be on administrative reform, empowerment of the administration, citizen facilitation and financial matters. The PMC will publish accountability documents and assess the works by concerned departments on an annual basis. He also announced a separate unit to manage the Bus Rapid Transport System project and proposed new 954 posts, including that of expert directors for water, sewage and road departments.