E-Paper
44% rise in PMC budget allotted for road repair, maintenance: Study
PMC has proposed ₹1,885 crore for road maintenance and street lighting in the upcoming financial year 2024-25, as per study by Policy Research Organisation and Gokhale Institute Of Politics And Economics
PUNE While the Pune Municipal Corporation (PMC) has allotted ₹13.50 crore for new road construction projects it has proposed an expenditure of ₹1,885 crore for road maintenance and street lighting in the upcoming financial year 2024-25, as per a joint analysis of Policy Research Organisation (PRO) and Gokhale Institute Of Politics And Economics.
The study was undertaken between April 15 and May 15 and Ulka Kalskar, head of the Pune Municipal Corporation’s (PMC) finance department, also provided assistance.
The budget proposes ₹1,885 crore for road maintenance and street lighting, with 16.25% allocated specifically for road maintenance. The expenditure on maintenance and lighting has increased by 44.29% compared to previous years. Over ₹13.33 crore has been set aside for new road construction, a significant rise from last year’s ₹7.76 crore.
Neha Mahajan, who lead the project for the PRO, said, “Understanding the municipal budget is a crucial step towards financial literacy. It is important to grasp the municipal budget before moving on to the state and national budgets. Unfortunately, the municipal budget often gets overlooked. To change this, we decided to present it in a way that everyone can understand.”
Tanmay Kanitkar, president of PRO, said, “We aim to make our study accessible to more people. For the past four years, we have helped many NGOs and citizens understand financial matters through this study. This is our fourth consecutive year, and we are working to reach even more people.”
The study highlights that building permits, fees, and rates have become the primary sources of income for the municipal corporation. An 85.36% increase in revenue from building license fees alone is expected. Additionally, 21.57% of the corporation’s revenue is anticipated to come from the Goods and Services Tax (GST). This year, building permits and fees are projected to generate more income than GST.
Further allocations include 25.9% of funds for Mula-Mutha riverside conservation, rejuvenation, and beautification, as well as bridge construction. Additionally, 22.2% of the budget is designated for public transport improvements. Overall, 63% of the fund has been reserved, marking an 85.23% increase from last year. Water supply is another major focus, with 13.26% of the total expenditure and 25.42% of funding proposed for water supply projects.
Sahebrao Dandge, superintendent engineer, road department of PMC, said, “For developing new roads, we need more money to acquire land. Right now, most land owners demand cash compensation rather than Transfer development rights (TDR), Floor space Index (FSI). The PMC road department spends an amount on maintenance of roads such as resurfacing, potholes repairs, reinstatement of roads, footpath repair etc.”
Manoj Joshi, principal data analyst, played a key role in completing the project, with assistance from Ruchita Zingade.
Sayali Jog, assistant professor of economics at the Gokhale Institute, served as the chief guide. Urvi Bodhle, a student intern from the Gokhale Institute, contributed to data collection, analysis, and tabular presentation.
