The New Indian Express 31.08.2010
From the bleak house of BBMP
BBMP has presented a `8,488 crore surplus budget (it has to present a surplus budget as per the KMC Act), with an opening balance of `424.72 crore.
With no real source of revenue, other than property tax, BBMP is pinning its hopes on three major sources of grants — loans from financial institutions (around `4,000 crore), Central government’s JNNURM (`195 crore), state government grants (around `1,800) and the biggest hopes of raising money through Akrama Sakrama (`750 crore). If this money comes, then the projects would be a reality, otherwise they will remain on paper.
With staggering expenditure on pending bills, administrative costs, debt services, BBMP would be left with little or no money to spend on development. Moreover, it may even find it difficult to utlise the funds this fiscal as it has just six months to implement what it has promised.
The much-hyped Akrama-Sakrama scheme has already been incorporated as a revenue source even though the Governor is yet to give his assent for the scheme. BBMP hopes to mop up `750 crore from this scheme.
The ambitious and surrealistic budget is the first by an elected body after the formation of the BBMP. It lacks both direction and clarity on revenue generation and expenditure. The biggest breadwinner for the BBMP is property tax — so far only `800 crore has been collected. Sadashiva and Mayor SK Nataraj have made their intentions clear and stated that they would raise loans again to the tune of `1890 crore. BBMP already has loans worth `2,600 crore from various banks and `1,500 crore in unpaid bills. The Mayor said that they would pay back Rs 520 crore as part of the loan clearance next month. But with over Rs 4,000 crore in loans, one wonders how development will happen?
Sadashiva has stated that he will bring the nearly 6 lakh properties under the tax net and get more than 4.5 lakh traders to renew their trade licenses.
An amount of Rs 150 crore has been given in the Mayor’s grant and Rs 25 crore has been given to the Deputy Mayor, with only half of the prescribed one year of rule left for them.
