Corporators force BMC to roll back 25 per cent cut in fund

Corporators on Friday forced the municipal corporation to roll back its decision to cut their development fund by 25 per cent and at the same time suggested that the civic body borrow money from the banks to meet its expenditure.

Corporators on Friday forced the municipal corporation to roll back its decision to cut their development fund by 25 per cent and at the same time suggested that the civic body borrow money from the banks to meet its expenditure.

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Municipal Commissioner Swadheen Kshatriya said the idea to borrow from banks was not feasible.

However, he announced that the 25 per cent cut was being withdrawn.

The Brihanmumbai Municipal Corporation (BMC) had decided to reduce Rs 1.35 lakh discretionary fund of each corporator since
it is facing cash crunch this year. The discretionary fund is always in controversy due to allegations of corruption in its
use.

The cut was expected to save Rs 82 crore.

However, in a meeting of civic Standing Committee on Friday, corporators forced the municipal corporation to do away with the cut.

If the BMC borrows funds, it would be the citizens who would end up paying the interest on the same.

Though Additional Municipal Commissioner R.A. Rajeev argued that the administration just wanted the corporators to spend less, the elected representatives were not in a mood to listen.

BJP member Ashish Shelar said: “Instead of asking the government to give permission to lift Rs 2,500 crore internal loan why aren’t we taking it against our deposits in banks?”

The BMC has sought the state government’s permission to take loans from its internal reserves but the latter has not given it.

BJP corporator and MLA Yogesh Sagar also suggested appointing a financial management consultant to take care of the civic funds.