Long on hopes, short on realities
THOUGH THE Rs 846.57 crore BMC budget looks ambitious enough, the Mayor and his advisors seem to have neglected one major aspect ? how to generate huge funds needed for various development schemes. The revenue that the BMC generates presently is used up to meet establishment costs and run water supply scheme.india Updated: Mar 25, 2006 13:36 IST
THOUGH THE Rs 846.57 crore BMC budget looks ambitious enough, the Mayor and his advisors seem to have neglected one major aspect — how to generate huge funds needed for various development schemes. The revenue that the BMC generates presently is used up to meet establishment costs and run water supply scheme.
With no mention about how to earn additional revenue for the schemes, the budget appears a tall order. The Mayor has projected the revenue income worth Rs 140.45 crore, which included the grants and compensation of the State Government.
Against this revenue earning, the BMC will have to spend an amount of Rs 169 crore, which included the necessary water supply and establishment expenditure. The Mayor proposed the expenditure of Rs 35.03 crore on the water supply.
This expenditure may be higher in case of delayed rains. Similarly, the establishment expenditure is proposed at Rs 55.42 crore besides the Rs 17.77 crore on the necessary developmental works and Rs 5.34 crore on the sanitation.
In this situation, the Mayor has proposed to spend Rs 113 crore on these important works. This expenditure is more than the revenue income, excluding State Government’s grant and compensation. The BMC would earn only Rs 65.75 crore from various taxes.
The budget makes no mention of how the BMC would arrange its share of Rs 129.18 crore in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for 2006-07. Similarly, the BMC will have to arrange its share in the Asian Development Bank-funded schemes.
The BMC will also have to arrange the funds for the Phase-II of Kolar Scheme, which is going to be revived in the next fiscal. Yes, the Mayor reduced his discretionary fund from Rs 99 lakh to Rs 66 lakh. But, it would save just about Rs 33 lakh. One good thing about the budget is no new tax is proposed.
First Published: Mar 25, 2006 13:36 IST