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CM Shinde promises ₹300 crore to bankrupt Pune Cantonment Board
The PCB has been facing a financial crisis since 2017 when local body tax (LBT) was phased out, paving the way for GST
In a breather for the cash-strapped Pune Cantonment Board (PCB), Maharashtra chief minister Eknath Shinde has promised to release from the state exchequer 50% of the ₹600 crore in GST dues following his recent meeting with PCB chief executive officer (CEO) Subrat Pal at Mantralaya, Mumbai.
Pal told Hindustan Times, “We had a meeting with the CM at Mantralaya in Mumbai wherein he responded positively and said that 50% of the pending dues can be released. We consider this a positive development as it will help us tide over the financial crisis and serve the people better.” Pal had sought a special appointment with the chief minister’s office (CMO) over the GST dues pending since 2017, wherein he explained the precarious condition of the PCB and pointed out that civic projects worth hundreds of crores of rupees were stuck due to the lack of GST funds.
The PCB has been facing a financial crisis since 2017 when local body tax (LBT) was phased out, paving the way for GST. This, despite successive PCB CEOs and military officials taking up the issue with the government from time to time. Pal’s predecessor, Amit Kumar, too, had attended a hearing by the Maharashtra chief secretary on the issue and had given him a detailed briefing on the pending GST dues but to no avail. A delegation of elected members of the former board had even met union defence minister Rajnath Singh and apprised him of the dangers facing the cantonment area due to lack of funds. It may be recalled that the central government funds had dried up over the years, leading to an acute financial crisis in the board. So much so that the board barely had money to pay its employees or meet the establishment costs.
Against this backdrop, the PCB has been meeting its daily expenses through revenues generated from property tax and emergency ad hoc funds released by the defence estate department. Currently, projects worth more than ₹500 crore are stuck due to lack of funds while the GST deficit is estimated to be worth ₹600 crore. Civic activists believe that the PCB is facing a deficit of ₹1,200 crore and if funds are not allocated, a time will come when the board will have no money left to pay its employees. Currently, the PCB is facing issues related to acute shortage of staff and mushrooming illegal constructions. Besides, hawkers have encroached the cantonment area and development has taken a backseat due to sustained bankruptcy.
