Projects in Thane peg civic body’s liabilities at ₹3,000 crore this year

As Thane Municipal Corporation (TMC) is likely to present its budget estimate for 2020-21 next week, sources from its accounts department has said revenue has increased

As Thane Municipal Corporation (TMC) is likely to present its budget estimate for 2020-21 next week, sources from its accounts department has said revenue has increased in the past few years, so has the liabilities.

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With many ambitious projects taken up, the liabilities in this financial year will be around ₹3,000 crore.

The challenge before the TMC is to reduce liabilities gradually in the coming years.

TMC’s revenue has increased in the past five years from ₹1,377 crore to ₹2,800 crore. The corporation will have to walk a tight rope to maintain the balance between revenue and liabilities.

Last year, TMC had presented a budget estimate of ₹3,861 crore. Five years ago, it was struggling to pay salaries but the revenue of all departments increased —revenue of town planning department increased by ₹750 crore, property tax by ₹650 crore and GST by ₹800 crore.

A TMC official requesting anonymity said, “We will touch revenue collection of ₹2,500 crore this year. However, the liabilities too have increased up to ₹3,000 crore because of many unfinished ambitious projects. Some of the projects have taken off, while some of them are still on paper. We will be able to reduce the liability gradually when the projects are completed and the dues to the agencies are cleared.”

An official from the accounts department said the revenue has increased so liabilities are not a worry.

“The revenue generated is around ₹2,500 crore which will increase in the next one month. We have tabled many good proposals for the city’s development in the past few years, thus the increase in liabilities. We have done a step-by-step planning on how to reduce liabilities. This also depends on the time take for the projects to be completed.”