MC passes budget of ₹137 crore, will bank on govt for development

The meeting concluded in 10 minutes

The municipal corporation (MC) of Patiala has passed its annual budget of ₹137.45 crore without holding much discussion over increasing income generation resources.

Mayor Sanjeev Sharma Bittu (2L) addressing the General House during a special meeting held for passing the budget for next fiscal at MC office in Patiala on Monday. (Bharat Bhushan/HT)

A special General House meeting was held to pass the budget for next fiscal. And the was meeting concluded within 10 minutes. The House was briefed about the failure of financial heads concerned in achieving their targets for the ongoing year.

Of the total budgetary allocations of ₹137.45 crore for the next financial year, at least ₹83.20 crore (61%) is to be spent on committed expenses including payment of salaries and pensions, ₹51.45 crore (37%) on development works, and ₹2.80 (2%) crore for contingency expenses.

In the 2019-20 fiscal, the municipal corporation is expected to achieve 87% of its income generation target.

“However, seeing the budgetary proposal for 2020-21, it will be difficult for the civic body to meet its committed expenditure. With lesser revenue sources, the development works will be completely dependent on funds from the state government,” an official said, pleading anonymity.

Against the proposed income of ₹130 crore in 2019-2020, the MC has generated only ₹114.4 crore. In the first three quarters, the MC had achieved only 54% of its budgetary proposals with ₹71.41 crore so far.

“We have not included any of the Punjab government’s expected grants of ₹100 crore to for Patiala in the coming year. In the ongoing year, the MC has spent ₹89 crore received from the state government for development purposes,” he said.

Bittu added that in the coming year’s budget, they have earmarked development funds of ₹51.45 crore from MC’s revenue.

MC commissioner Poonamdeep Kaur said that they have set targets that can be achieved by the end of the financial year.

“Moreover, multiple departments have been directed to clear the backlog of financial recoveries including property tax arrears, building charges and water supply and sewerage arrears,” she said.

The MC commissioner added that the state government has already announced ₹25 crore for setting up of heritage street in Patiala, while ₹8 crore for biomining and remediation project.

Meanwhile, the MC aims to collect ₹23 crore from property tax and arrears of house tax, ₹15 crore as building application fee, ₹15.50 crore water supply sand sanitation charges, ₹52 crore from good and service tax, ₹11.37 crore from municipal tax and electricity octroi, ₹5.1 crore from the rent and lease charges, ₹6 crore from additional excise duty, ₹5 crore as advertisement tax, and ₹4.48 crore from other taxes including road cutting charges, entertainment tax, license fee, plot registration and others.