Residents may have to pay garbage cess, if the civic body manages to get the tabled bill passed.

Rubbish to the rescue?

Residents may have to pay garbage cess, if the civic body manages to get the tabled bill passed.

A bankrupt BBMP is looking at garbage to mobilise resources and a proposal was tabled in the council yesterday, to levy cess on domestic and commercial solid waste. If the proposal is accepted and the bill is passed, citizens will have to pay for producing garbage daily, while rates for commercial and industrial units are a bit exorbitant.

Nahi chalega: JDS corporators seen protesting during the BBMP's
session for hiking developmental fees and implementing taxes for garbage
at the BBMP Office. Pic/ Satish Badiger

While citizens have to pay between Rs 10 and Rs 50 a month, the rates for commercial and industrial establishments are between Rs 100 and Rs 600 a month respectively.

"The move indicates just how bankrupt is the BBMP. The corruption is so rampant that their coffers are empty, and the authorities are struggling to mobilise resources," said P R Ramesh, former mayor and Congress leader.

Financial woes
BBMP council had passed an ambitious budget of size Rs 8,844 crore this year, a big leap from last year's budget of around Rs 2,000 crore. P N Sadashiva, chairman of the finance committee, who presented the budget, was banking on the state government's special grants and property tax. But the tax collection was so abysmal that the council was left with a cash reserve, which was not even sufficient to pay the staff salary for the next three months.

The council's target was to collect Rs 2,400 crore by November end as property tax. But the actual collection was only Rs 602 crore. The council had asked the government for Rs 1,500 as special grant, but there is still no sign of the funds.

Around Rs 195 crore was expected from JNNURM (Jawharlal Nehru National Urban Renewal Mission), while another Rs 403 crore had to come from State Finance Commission. However, there is a delay in disbursement, thanks to BBMP's lax approach.u00a0

The budget had proposed to raise a fund of Rs 107 crore from trade license from the small shops, but the authorities could not make headway in this direction.

Paying the debt
Rental revenue collection, including parking fee was expected at Rs 701 crore, but the money that came in is negligible. But with opposition parties protesting against the hike in developmental charges on private sites, no money was collected.

The BBMP had a debt burden of Rs 3,500 crore. So Rs 250 crore goes annually as repayment, and has left their finances in a bad shape.

"Our critical financial condition notwithstanding, waste management is an important issue. And levying cess on garbage will address both issues, and I hope citizens will take it in the right spirit," said Sadashiva. He said a proposal for the grant had been sent to the government.

However, an official in the finance department said they were not in a position to respond to the request as of now, thanks to statutory issues.u00a0 "However, the government was considering it seriously, as the CM has taken a special interest in the issue," he said.

Garbage cess rates

Domestic buildings
Less than 1,000 sq ft: Rs 10
1,000 to 3,000 sq ft: Rs 30
More than 3,000 sq ft: Rs 50
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Commercial buildings
Less than 1000 sq ft: Rs 50
1,000 to 5,000 sq ft: Rs 100
More than 5,000 sq ft: Rs 200
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Hotels, marriage halls, and nursing homes
Less than 1,000 sq ft: Rs 300
1,000 to 5,000 sq ft: Rs 500
More than 5,000 sq ft: Rs 600