Mumbai: BMC has spent only 37 per cent of its budgeted money

The Brihanmumbai Municipal Corporation (BMC) has spent only 37 per cent of its capital budget for various infrastructure works, in nine months of the financial year. The expenditure is majorly on projects ongoing for the past few years. Of the total expenditure, 20 per cent is only on the coastal road. Another 25 per cent is on city roads and bridges, and 10 per cent has been given to the BEST. Other infrastructure work proposed in the budget 2022-23 was hit due to various reasons.

The Ashray Yojana for homes of workers, the Goregaon-Mulund link road, sewage treatment plants (STP), and hospitals' redevelopment which were proposed by the then Shiv Sena-led BMC didn't take off till December, while foundation stones were laid for the STP and hospital redevelopment projects last week.

Work is on to convert three civic-run hospitals in the suburbs, including the Bhagwati hospital at Borivli, into super-speciality facilities and BMC says it will be completed in 2023. Pic/Anurag Ahire

In the last financial year ie 2021-22, the BMC spent Rs 13,347 crore on infrastructure which is 71 per cent of the budget estimate of Rs 18,750 crore. The BMC increased the funding to Rs 22,647 crore in 2022-23 but till the end of the first three quarters, it ended up spending only Rs 8,398 crore, which is 37 per cent of the budget, that too, on the projects which are ongoing for the past few years. Hardly any new project was kick started in the period.

Civic chief speak

The budget was presented by civic chief I S Chahal to the BMC which was then led by Shiv Sena, in February 2022. A major amount was kept aside for projects like seven sewerage treatment plants (Rs 1,340 crore), development of hospitals (Rs 2,510 crore), Ashray Yojana-houses for sanitation workers (Rs 1,300 crore) and the Goregaon-Mulund link road (Rs 1,300 crore), etc. But the work on these projects hasn't started yet.

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"Most of the expenditure happens in the last three months only. Site clearance, compensation for Project Affected People, environment clearances, take some time. However, the issues are being addressed vigorously. For example, many sites for Ashray Yojana have become clear after follow up meetings. By the end of March there will be significant expenditure on capital projects," said Chahal, municipal commissioner. He added that the hospital project was delayed because of environmental clearance and civil aviation permission, and as per the tender procedure of STPs, six months were given for advance detailed designing. Some of them also require environmental clearance which takes time.

‘Lack of fiscal management'

However the corporators feel that there is lack of willingness and fiscal management. "The budget was sanctioned by the previous general body of the BMC with elected representatives, and it is the duty of the administration to implement it. But it is now clear that the administrator deliberately didn't take up work. It is the administration's unwillingness towards city development. Why have projects like STPs, Ashray Yojana and hospital development been delayed so far?" said Ravi Raja, Congress leader and former leader of opposition in the BMC.

"Fiscal management has gone for a toss. Major projects like Ashray Yojana, hospitals - upgradation and construction of new establishments - new road works haven't been started yet. Unplanned activities like beautification works and petty things like the G20 visit have taken over the budget. The BMC spent Rs 19 crore on the prime minister's visit. Unplanned, temporary activities like these are happening but there are no tangible asset creations or capital works happening," said Rais Sheikh, former corporator and MLA of Samajwadi Party.

The BMC also spent on storm water drains (Rs 782 crore), water supply project and hydraulic engineering (Rs 770 crore), repairing of school buildings (Rs 277 crore) and sewage disposal project (Rs 254 crore). It also spent Rs 185 crore on the development plan, Rs 148 crore on sewage operation and Rs 201 crore on repairing of municipal properties and slum improvement till December end.