Civic officials are worried because octroi, the biggest source of revenue for the BMC, has dropped by 14 per cent as compared to the corresponding period last year.

A senior civic official said all departments were asked to curb spending by following a 16-point guideline.

The official added, "The head of departments have been told not take up new projects and postpone non-critical ones."

Officials have also been asked to devise new ways to generate revenue like levying charges from debris dumping and action on hawkers.
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"Moreover, they have been asked to speed up the recovery of debts made to the state government," said the official.

The octroi department is gearing up to recoup its losses. "We have a target of Rs 400 crore per month.

We have stepped up our vigilance and are taking steps to prevent octroi thefts," said SS Shinde, joint commissioner (BMC).

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