No steady income for BMC this year, but budget size increased by 17 per cent

The BMC Budget 202223 increased 17 per cent from the previous year to Rs 45949 crore with the help of internal loans of Rs 14704 crore which is one third of the total amount This is despite the lack of any constant source of revenue There was no mention of any new tax but a revision of property tax was proposed The BMC got a major boost from this yearrsquos 35 per cent more income due to receipt of a development plan into the next yearThe civic body is also looking forward to generating revenue through reimbursement of Covid expenditure levying user fee under solid waste management and digital advertisement apart from pending dues from the state governmentThe BMC estimated Rs 30743 revenue from various sources for the 202223 financial year This includes major sources like compensation in lieu of Octroi at Rs 11429 crore and income from property tax at Rs 7000 crore But in the financial year 202122 revenue from property tax was revised from an estimated Rs 7000 crore to Rs 4800 crore due to relief to residential property up to 500 sq ft carpet area to the tune of Rs 462 crore per annumBMC chief I S Chahal said an internal loan has been proposed to meet the gap of income and expenditure PicSuresh KarkeraEven the revision of capital value deferred for two years leading to further reduction The BMC budget has proposed to take an internal loan from fixed deposits of Rs 14704 crore to meet the gap of income and expenditure202122 reviewThe BMC had estimated Rs 27811 crore income in 202122 including Rs 2000 crore from the development plans But as the state government curtailed the developed premium to be collected from builders by 50 per cent the BMC received a whopping Rs 13543 crore till January and estimated another Rs 1207 crore in the next two months This has boosted the estimated income from Rs 27811 crore to Rs 37538 crore in this financial year However even as BMC won the lottery this year there isnrsquot any constant high yield revenue source in the next yearFocus on high priority worksBMC chief I S Chahal said a policy to undertake only high priority works will be exercised so that the projects in the pipeline will not be hampered in any way due to paucity of fundsldquoConsidering the increasing liabilities of ongoing projects and special projects obligatory duties huge amounts will be required in the future The completion of the significant projects will be hampered if sufficient funds are not made available during the ensuing years Therefore the necessity of raising internal loans to meet the expenditure on these projects has arisenrdquo Chahal addedMeasures to increase revenueThe major sources of revenue for 202223 are compensation in lieu of Octroi at Rs 11429 crore income from property tax at Rs 7000 crore income from Development Plan Department at Rs 3950 crore interest on investments at Rs 112874 crore and income from water and sewerage charges at Rs 159693 croreIn addition claims of Rs 141732 crore and Rs 134756 crore for reimbursement of Covid expenditure up to September 2021 BMC will explore additional sources of revenue income by allowing digital advertisementTotal outstanding dues from the offices of various departments of the state government stood at Rs 676816 crore including Rs 484061 crore from the Education department till December 31Budget break upRevenue income Rs 30744Internal loan special fund Rs 14704Sale proceeds premium of land etc R501Total Rs 45949Capital expendituresCoastal RoadProject Rs 3200Health Rs 2660Traffic and Roads Rs 2200Water Supply Rs 1682Bridges Rs 1576Storm water drain Rs 1539Sewerage Treatment plant Rs 1340GMLR Rs 1300Staff quarters Rs 1300Sewerage disposal Rs 1169Development plan Rs 1002Repairs of schools Rs 500Solid Waste management Rs 377Others Rs 2798Total Rs 22646Figures in crore