Mumbai: Cut down expenses, BMC tells all its departments

"Through a circular issued on Tuesday, BMC mentions that only urgent and necessary works should be taken up"

In a bid to ensure that the Brihanmumbai Municipal Corporation (BMC) does not run out of funds to handle the pandemic, the civic body has issued a circular asking all its departments to cut down on their expenses and plan only urgent and necessary works. mid-day had earlier reported how the Roads Department was asked to rethink certain projects due to the fund crunch.

The circular, issued on Tuesday, mentions a formula that the civic body has come up with and that needs to be adhered to by all the departments while planning works. It has also asked all the heads of departments to study this year's budgetary provisions, consider all the pending payments and carry out urgent and necessary works only.

Formula for new works

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The formula mentions that each department should multiply the current financial year's capital expenditure budget by 2.5 and then subtract the total expenditure of ongoing works, completed works for which payments have not been made, proposals sent for approvals and those that have been approved. After that whatever amount remains should be used for taking up new works.

Requesting anonymity, a civic official said, "The BMC has been trying to save funds and approve major project works, which can otherwise be deferred. This is why a decision has been taken to have a formula in place to carry out works."

There has been a series of discussions on which projects to be approved and which ones to be deferred to next year. While the accounts department was not keen on approving any of the new projects, the authorities concerned decided that the parent department should check the details and put up only those tenders, which
were necessary.

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mid-day had last week reported how the BMC's Accounts Department had asked the Roads Department to take stock of their budget before submitting proposals for construction of roads worth R460 crore.

Ongoing works

A civic official from the Accounts Department said, "Currently there are ongoing works worth hundreds of crores of rupees, hence taking up new works amidst the pandemic is not advisable. Most of the civic body's resources are being used for fighting COVID-19 and for running the infrastructure that has been set up for it. The departments will have to take stock of their liabilities and plan works accordingly."

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