Today in New Delhi, India
Mar 20, 2019-Wednesday
-°C
New Delhi
  • Humidity
    -
  • Wind
    -

Gurugram civic body spent three times less, collected half the revenue it did in last fiscal

At Rs 543.36 crore, MCG’s expenditure was nearly three times less in 2018-19 than in the last fiscal, when it spent Rs 1,327.87 crore. The civic body had estimated to spend Rs 1,884.59 crore in the current fiscal.

gurgaon Updated: Feb 26, 2019 04:44 IST
HT Correspondent
HT Correspondent
Gurugram
Gurugram,revenue,MCG
The MCG had estimated a collection of Rs 2,290 crore in 2018-19, though the expected revenue till March 31 is only Rs 868.41 crore, almost half of what the MCG received in 2017-18 as revenue (Rs 1,657.41 crore).(Picture for representation)

Giving an account of the works done through the year in the civic budget meeting on Monday, MCG commissioner Yashpal Yadav explained the reasons for civic body’s significantly low expenditure in the 2018-19 fiscal, chief among which was the takeover of several functions by the GMDA.

At Rs 543.36 crore, MCG’s expenditure was nearly three times less in 2018-19 than in the last fiscal, when it spent Rs 1,327.87 crore. The civic body had estimated to spend Rs 1,884.59 crore in the current fiscal.

Among the other key things discussed during the meeting were the MCG’s revenue target for this fiscal, which has fallen short by almost half, though officials said they were still waiting on receipts from property tax and stamp duty till March 31 to know the exact revenue generated in this year.

The MCG had estimated a collection of Rs 2,290 crore in 2018-19, though the expected revenue till March 31 is only Rs 868.41 crore, almost half of what the MCG received in 2017-18 as revenue (Rs 1,657.41 crore). For 2019-20, the MCG has set a collection target of Rs 2,605.13 crore and expenditure of Rs 2,150.77 crore.

A senior MCG official attributed the significantly higher collection through property tax in 2017-18 to the introduction of multiple rebate schemes and incentives for clearing dues and paying property tax.

Last fiscal, MCG had collected the highest amount through property tax — Rs 342.24 crore. But this year, they did not introduce any rebate schemes, barring the one which will be applicable from February 25-28. The MCG estimates collection of Rs 196 crore through property tax in this fiscal, 2018-19.

The official added that last year they had received Rs 845.11 crore from the state for their share in stamp duty, and this year they have only managed to receive Rs 382.40 crore from them. MCG commissioner Yashpal Yadav said they will meet DHBVN officials for recovering the pending Rs 176.70 crore in electricity tax or have them adjust it in the civic body’s monthly electricity bills.

Citing reasons for MCG’s low expenditure in the 2018-19 fiscal, Yadav said, “The budget is an estimate, and takes into account the expenditure which may be needed for carrying out various development works.”

Yadav said that since master roads and bridges were transferred to the GMDA, the civic body only ended up spending Rs 38 crore against an allocated budget of Rs 400 crore.

Similarly, for medical college in Kherki Majra, for which the MCG had reserved Rs 100 crore, the GMDA exclusively proceeded with the project and the civic body did not need to spend on it.

He added that since nine private colonies were not taken over in the last fiscal, the Rs 50-crore fund reserved for it remained unspent. In addition, the current amenities, he said, proved to be enough and hence the Rs 100 crore reserve fund was not used.

“The MCG has currently filled half the 601 sanctioned posts, as result of which only Rs 14.24 crore out of Rs 30 crore funds have been spent on salaries. Our resources are limited and hence we have not been able to execute the amount of development work we had set aside funds for. We have asked the state government for more manpower, especially in the engineering wing,” Yadav said.

First Published: Feb 26, 2019 04:44 IST