PMC collects ₹4,000 crore in revenue, deficit of ₹3,000 crore in 2020-21

In the Covid-19 pandemic hit financial year, the Pune Municipal corporation (PMC) revenue collection reached ₹4,000 crore but fell short of around ₹3,000 crore

In the Covid-19 pandemic hit financial year, the Pune Municipal corporation (PMC) revenue collection reached ₹4,000 crore but fell short of around ₹3,000 crore. However, the PMC administration is claiming financial sustainability.

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The PMC receives maximum revenue from property tax, Goods and Services Tax (GST), development charges and water taxes. The civic body sanctioned a ₹7,390 crore annual budget for 2020-21, and the standing committee gave certain targets to different departments to collect revenue.

In the end of the fiscal year of 2020-21, the PMC received ₹1785 crore from the GST grant from the state government. After that, the civic body collected a maximum revenue of ₹1,665 crore from the property tax department.

The property tax is one of the major income sources for the PMC . Despite the Covid-19 pandemic, the tax department received maximum tax collection as compared to last year. The PMC stood up as one of the highest tax collection revenue in the state as per PMC property tax department officials.

In 2020-21, lockdown hampered all development activities in Pune city. After relaxation to construction activities and concession in stamp duty by the state government, real estate got some boost and the PMC revenue increased and reached 567 crore. The PMC had estimated revenue of ₹891 crore from development charges.

Mahesh Doiphode, deputy municipal commissioner of GST said, “We got ₹1,785 crore from GST. The target was set of ₹1,838 crore in the annual budget of 2020-21.”

Prashant Waghmare, city engineer of PMC said, “Due to the Covid-19 pandemic, construction activities were hampered. There is a slowdown in the real estate industry. Therefore, we got ₹576 crore against the target of ₹891 crore mentioned in budget-2020-21.”

Vilas Kanade, joint municipal commissioner of property tax department said, “We received revenue of ₹1,665 crore from property tax. It is ₹400 crore more in comparison to last year’s tax collection. It is an achievement of the PMC during the Covid-19 situation.”

Aniruddha Pawaskar, chief superintendent of the PMC water supply department said, “We have sent notices to defaulters. We have collected ₹100 crore in revenue from water tax. We will continue to collect water tax even after April 1, 2021.”

Ulka Kalaskar, chief accountant of PMC said, “Though, we have a deficit, we have sustained financially in the pandemic situation. In 2020-21, we spent around ₹250 crore on Covid-19. We got ₹3 crore from the state government so far. Overall, our financial situation is under control.”

Hemant Rasane, PMC standing committee chairman said, “We agreed that there is a deficit but, we should not ignore the fact that Covid-19 hampered development of the entire country. However, we have done remarkable work and collected maximum revenue in the last three months after relaxation of restrictions.”

“Due to Covid-19, development work was stopped in the city as per state government directives. We approached the state government and received permission to spend money on development work. In the last three months, the PMC collected more than ₹1,000 crore and spent on various development works in the city, he added.

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BOX

PMC annual budget -2020-21- ₹7390

Income sources Set Target 2020-21 Actual collection

GST grant 1838.00 1785

Property Tax 2320.00 1665

Development charges 891.00 576

Water taxes 261.00 100

(Amount in crore)

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