PMC draft budget 2020-21: Tax is the way forward for Pune’s development agenda

Shekhar Gaikwad, who recently took charge as municipal commissioner, tabled a draft budget of Rs 6,229 crore, Rs 144 crore more than last year’s budget of Rs 6,085 crore

pune Updated: Jan 28, 2020 16:25 IST

Abhay Khairnar

Hindustan Times, Pune

PMC commissioner Shekhar Gupta presented the draft budget, before a packed house, to standing committee chairman Hemant Rasane and mayor Murlidhar Mohol at the PMC headquarters on Monday.(Rahul Raut/HT PHOTO)

Pune Municipal Corporation (PMC) commissioner Shekhar Gaikwad on Monday presented a Rs 6,229 crore draft budget for the year 2020-21, with a proposal for a 12 per cent hike in property tax.

Gaikwad presented the budget to standing committee chairman Hemant Rasane and mayor Murlidhar Mohol. The standing committee will now prepare the final budget on the basis of the draft.

In addition to the hike in property tax, the residents will also have to pay an additional 15 per cent amount in water tax, which has been approved by the general body as a part of the 24X7 water supply project implementation.

The proposed hike has to be approved by the standing committee and general body before its implementation.

According to Gaikwad, efforts will be made to increase tax collection to raise the income of the civic department.

On the expenditure side, the budget expects to spend Rs 1,860 crore on salaries and the PMC commissioner has marked Rs 2,373 crore for development funds.

Gaikwad also proposed to introduce concept of supplementary budget and review of all existing schemes being implemented by PMC.

“A common trend often seen in local bodies is that, after the budget, elected members and administration ask to divert the funds for other works. From this year onwards, such requests will not be entertained. The PMC will present the supplementary budget in December. This is being practised in the state government and will now be replicated in the PMC,” said Gaikwad.

Among other projects proposed in draft budget include measures to improve city’s traffic, provide more options for private vehicles to streamline daily movement of vehicles, building more hostels for working women, increase in safety for women, developmental works in the newly merged villages, beautification of flyovers, increase in electric buses and more public gardens.

Budget Highlights

Tax hike: 15% hike in water tax and 12 % hike in property will help PMC earn Rs 29 crore and Rs 150 crore respectively.

Rebate scheme: Tax rebate scheme of 5-10 % if residents pay property tax between April 1 and May 31.

Rs 200 crore loan through bonds: PMC will step into the share market to raise Rs 200 crore through bonds. Previously, in 2017, a loan of the same amount was taken to execute 24x7 water scheme, which failed to kick-start. That amount which was kept as a fixed deposit until a few months ago has been exhausted.

Rs 33 crore for Ambil odha wall: A provision of Rs 33 core was made for the development works along Ambil odha. PMC plans to remove debris and erect a compound wall.

Drainage lines for merged villages: PMC proposed Rs 11.55 crore for the construction of drainage lines in the newly merged 11 villages in the city. A development plan (DP) for the villages will be sent to state government for approval.

Beautification of flyovers: PMC proposed the beautification of flyovers and the spaces under it. The civic body will come up with gardens and sculptures. Rs 5 crore has been proposed to beautify 10 of the 18 flyovers.

Children’s traffic plaza: In order to make children aware of traffic rules and safety, the PMC proposed to construct a children traffic plaza in Aundh and Yerawada.

300 electric buses: PMPML’s request for Rs 346.38 crore for 300 new e-buses approved.

Hostels for working women :The commissioner said that it is the need of the hour to have more hostels for working women. One such hostel has been proposed at Baner on survey number 114 and 115.

Food plaza at Sarasbaug: With many hawkers running business at Sarasbaug, PMC plans to construct a food plaza near the Sarasbaug garden to relocate hawkers in a systematic way.

BRTS under review: Gaikwad will soon conduct a meeting with the Central Institute of Road Transport and other experts to review BRTS

Rain water harvesting: PMC will stop giving rebates if the rain water harvesting system is bogus and not benefiting the public. For this they will inspect 50 commercial and 50 residential properties, randomly, in order take a final decision.

Balancing the books

Income (Revenue)

Rs 0.02 crore: Initial balance

Rs 239.15 crore: Local body tax

Rs 1,838. 76 crore: Goods and Service Tax (GST)

Rs 1,970.20 crore: Property tax

Rs 749.25 crore: Building permission and development funds

Rs 463 crore: Water tax

Rs 196.74 crore: Government subsidies

Rs 489.26 crore: Other income

Rs 200 crore: Bonds and loans

Rs 82.62 crore: Prime Minister’s Housing scheme (PMAY)