The state government has failed to give more than 50% of the grant to civic body in lieu of octroi tax. The 150-year-old tax levied by the municipalities and municipal corporations was abolished by the state government in 2007.
The Ahmedabad Municipal Corporation (AMC) had collected the octroi in November 2007. From 2008, the civic body was suppose receive Rs 21,678 crore from the state but it has received only Rs 10,481.07 crore. It's been over 11 years, and the AMC is yet to receive Rs10,525 crore.
"The state government has not kept its promise to give financial help in lieu of octroi income. This has paralysed AMC financially," said Dinesh Sharma, leader of the Opposition.
Till 2007, 70 per cent of the AMC's main source of income annually came from octroi. A senior official from the Finance Department said that the city is receiving less and irregular grant from the state government.
Sources said that due to the shortfall of money, AMC is struggling to complete its developmental works. "The insufficient amount of grant has hampered developmental works. With more than 2,800-km of road network, there is only 950-km of stormwater network. The newly added area does not have the basic infrastructure like proper roads, water and drainage connection," said Sharma.
He added that water logging during monsoon has become a critical issue and for the first time in history, two years ago chief minister Vijay Rupani surveyed flood-affected area in a boat.
To meet the corporation's financial needs, AMC recently borrowed Rs 200 crore from the market in the form of municipal bonds. Sources said that AMC plans to borrow Rs 500 crore in the next financial year.
CASH CRUNCH
- Till 2007, 70% of AMC's main source of income annually came from octroi
- AMC was to receive Rs 21,678 crore from state but it has received only Rs 10,481.07 crore till date
- It's been over 11 years, and the AMC is yet to receive Rs10,525 crore from the state
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Till 2007, 70 per cent of the AMC's main source of income annually came from octroi. A senior official from the Finance Department said that the city is receiving less and irregular grant from the state government.
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