The basis for fixing revenue receipts questionable.
The Bruhat Bangalore Mahanagara Palike (BBMP) presented its budget on Monday, which, however, seems to have fallen short of people’s expectations.
It repeats the errors of over-estimation of revenue receipts. Several questions like what is the basis for fixing the revenue receipts at Rs8,497.97 crore crop up.
It’s debatable if the BBMP has adhered to the Medium-Term Fiscal Plan (MTFP), while making these projections. The revenue projections made in the MTFP for 2010-11 is only Rs4,315.63 crore, including borrowings. But what has been projected is almost double this figure.
There is a difference of Rs3,900 crore between the revenue from confirmed sources (Rs4,597) and the anticipated receipts, which will have to be met by loans. According to MTFP, the proceeds of 26 revenue circles in core areas are already escrowed against loans.
The BBMP was also supposed to set up a budget control cell to make more realistic projections, but even that seems to have not been done. It seems that this is a budget meant to provide false assurances.
The details of the capital works to be undertaken for Rs4,878 crore amounting to 58% of the expenditure are not known. These are presumably for road works. The total amount allocated for welfare, education and health combined is a mere Rs742.08 crore.
The amount allocated for basic services to the urban poor is only Rs44.80 crore which is almost the same as that for the approach road to the airport (Rs40 crore) and the widening of Bellary and Jayamahal roads (Rs44 crore).
Since over Rs370 crore had remained unutilised under the SC/ST sub-plan last year, this amount should have been carried over to this year and an additional amount — 22.75% of this year’s budget (after making the necessary deductions) — should have been allocated under the same head.
The amount of only Rs477.05 crore is a gross injustice to the less fortunate sections of the society.
In short, the budget lacks new vision and is most likely to encourage skewed development in the city.
— The writer is a civic expert
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