The Hindu 19.03.2010
It is a tough job ahead for new civic body
S. Rajendran
| BBMP has a history of poor revenue generation |
Total property tax collection in Bangalore with 22 lakh properties is a mere Rs. 680 crore
The city’s per capita revenue generation is only Rs. 810, while in Chennai it is Rs. 1,385
Bangalore:The upgradation of Bangalore to a metropolitan authority in January 2007 has not really transformed the quality of living standards, and it is here that the new civic body comprising 198 councillors has its task cut out.
The jurisdiction of the Bruhat Bangalore Mahanagara Palike even beats that of the New Delhi Municipal Corporation and the Municipal Corporation of New Delhi, and is almost double the size of the Municipal Corporation of Greater Mumbai (437 sq.km.).
The new civic body has to motivate people to payproperty taxes and ensure a higher degree of tax compliance.
For a city with a jurisdiction of around 810 sq.km., and with properties numbering to around 22 lakh, the total property tax collection is a mere Rs. 680 crore.
The owners of only a third of properties (8.6 lakhs) pay their taxes.
The rest of the properties have been classified either as unassessed for tax or those who have refused to pay the appropriate quantum of tax thus far.
A boon
It is here that the “Akrama-Sakrama” scheme to regularise unauthorised constructions is expected to serve as a boon not merely to those who have indulged in violation of the building by-laws but to the BBMP itself.
Tax
Tax compliance in Bangalore is rated as very poor and political interference and a high level of corruption have been the main reason for this.
The BBMP has one of the poorest per capita revenue generations among the municipal corporations in the country and this is one hurdle coming in the way of the authorities in meeting the expectations of the people.
According to a report of the Reserve Bank of India on Municipal Finances, the per capita revenue generation in Bangalore is a measly Rs. 810 compared to Rs. 3,417 of the Greater Mumbai corporation, Rs. 1,890 in Pune, Rs. 2,344 in Nasik, Rs. 2,577 in Surat, Rs. 1,029 in Indore, Rs. 1,385 in Chennai, Rs. 1,178 in Kolkata and Rs. 1,233 in Baroda.
Only Kochi, with Rs. 858 is near to Bangalore’s number. Similarly, the per capita revenue generation in New Delhi is Rs. 872 but the Delhi municipal corporation receives special grants from both the Delhi State Government and the Union Government.
Amid all the talk and grandiose plans to develop the Bangalore Metropolitan like some cities in the world, the Bruhat Bangalore Mahanagara Palike has hit aroadblock of a different kind — lack of funds for evenbasic infrastructure development.
Sources in the BBMP told The Hindu: “The revenue of the BBMP will just suffice to meet the establishment costs, apart from the costinvolved for maintenance works.
“The onus is now on the Government to provide special grants for the BBMP to undertake major works.
“The budget of the BBMP is around Rs. 4,300 crore, and a major part goes towards loan repayments and interest on loans.”
