Mumbai civic body’s FD reserves surge at Rs82,410 crore

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the ₹82,000-crore mark recently after surpassing ₹80,000 crore earlier this year

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the ₹82,000-crore mark recently after surpassing ₹80,000 crore earlier this year. According to BMC’s finance department, FDs worth ₹5,664 crore matured this year, even as BMC invested ₹9,079 crore in new deposits.

The Brihanmumbai Municipal Corporation’s (BMC) fixed deposits (FDs) crossed the Rs82,000-crore mark recently after surpassing Rs80,000 crore earlier this year (HT FILE)

According to the statement to be presented in the standing committee on Wednesday, BMC has ₹82,410 crore in 343 separate FDs at private as well as nationalised banks. The civic body earns around ₹1,800 crore as interest per year on FDs. In the ongoing fiscal’s budget, BMC had taken an internal loan from FDs, attached to long-term infrastructure projects such as infrastructure development fund. For the construction of infrastructure projects such as the coastal road, BMC has linked FDs worth ₹50,952. The amount is expected to be spent in the next few years. Further, FDs of around ₹26,000 crore are part of the employees’ provident fund and pension accounts.

In the statement to be presented on Wednesday, the BMC has stated, “The FDs were at ₹79,002 crore in August. Of this, FDs of ₹5,664 crore matured and BMC made a new FD worth ₹9,079 crore by adding the matured FDs. The fresh amount invested in FDs is ₹3,407 crore in August, taking the total to over ₹82,000 (sic).”

In February, the civic body had presented a budget of ₹39,038.83 crore for the 2021-22 financial year, with no new taxes for Mumbaiites. The budget focusses on upgradation of the city’s infrastructure, healthcare and municipal education systems. The budget was 16.74% more than the previous year’s budget that was pegged at ₹33,441.02 crore. BMC’s capital expenditure – money utilised to upgrade infrastructure and amenities – has increased to ₹18,750.99 crore in 2021, which is ₹7,847.41 crore more than last year’s allocation at ₹10,903.5 crore.