After facing flak from various quarters for the multi-crore roads and de-silting scams, the BMC has decided to bring in ‘financial discipline’ in the next fiscal
The Brihanmumbai Municipal Corporation (BMC) is all set to increase it outlay to Rs 42,000 crore, a steep hike from last year’s estimate of Rs 37,050 crore. To facilitate this, the civic body is expected to hike certain taxes and introduce some new ones to make up for the loss of revenue from octroi.
After facing flak from various quarters for the multi-crore roads and de-silting scams, the BMC has decided to bring in ‘financial discipline’ in the next fiscal.
To begin with, the civic body will roll out a new financial blueprint for the year 2017-18 this month. It is expected that the civic administration will hike either water tax or water charges. It is expected to raise development charges and property tax, besides introducing some new taxes such as a street tax. The BMC is also likely to introduce a system whereby hospital fees will be nominal for Mumbaikars and relatively higher for those coming from outside Mumbai.
While these decisions may seem harsh, the citizens will have to bear with it as the BMC stands to lose around Rs 7,000 crore it used to earn from octroi, say officials. With Goods and Service Tax (GST) likely to be imposed from June-July this year, the BMC will not be able to collect octroi, which is the cash income of the civic body for day-to-day expenses.
“The civic body is bleeding while maintaining health services. It spends Rs 3,600 crore, but earns only Rs 250 crore annually,’’ said a civic official.
He said this is a huge gap, and it needs to be filled as the corporation is planning to upgrade all its hospitals, start four new ones and also execute ‘Health Management System’ which will be entirely computerised so that the patients does not need to carry his/her record on every visit.
Civic sources said that financial discipline will be brought in, not as a one-time move, but will have to be practised and exercised by various civic departments by ensuring that all the projects are executed on a deliverable-based system.
With a slew of measures taken by the country’s richest corporation, the implementation and execution of time-bound projects will be done by delegating responsibility to each officer of the respective department. The officials will be held accountable for the budget monitoring, goof-ups and also for ensuring its implementation.
“The Municipal Commissioner has already given instructions regarding preparation of tenders based on standard bidding documents, tender registration rules, strict guidelines for cost variations in projects. Apart from this, responsibilities are being delegated to higher officials, heads of the departments and also deputy municipal commissioners of the departments concerned. With all these measures, it is expected that the administration should be back on the right track and that it works towards completion of projects within the stipulated period”, said civic official on condition of anonymity.
Octroi revenue which saw a decline in the financial year 2015 - 16 has seen a good rise in the last quarter of 2016-17. It is expected that the civic body will cross the estimates of Rs 6,895 crore and may reach up to Rs 7,200 crore. With this positive note, the estimated income for the year 2017-18 is expected to go anywhere between Rs. 7500 - 8000 crore.
Similarly property tax is expected to rise to Rs. 4500 - 5000 crore as compared to estimated Rs.2738.89 in 2016 - 17. However, considering the lull in the real estate market and slow pace of new development projects, the development charges recovered from any development in the city was estimated at 6284.71 crore, but the civic body has received income of close to Rs. 4500 from this sector. For the year 2017 - 18, civic body’s conservative expectation would be not more than Rs. 5000 - 5500 crore.
With an annual 8 per cent rise in water tax and sewage tax, there is expected to be an additional revenue of Rs. 100 - 150 crore to last years estimates of Rs. 1244 crore. The civic body is also considering the additional connections given this year and to be given next year. Internal loan of Rs. 1300 - 1500 which is the interest from the fixed deposits of the BMC will also be considered for the use if needed for the capital expenditure.
Civic official added, “There is lot on the plate right now, already. There is no point announcing several big-ticket projects and if those cannot be handled. Even if the administration completes the ongoing projects in next five years, citizens will be benefited. However, there are very few new projects lined up for the next financial year and the major one is four new hospitals. Civic body plans to allocate little more than Rs 200 crore to open the head for the hospital project. It will focus on completion of the much-touted projects such as Coastal Road, Goregaon Mulund Link Road, two new water tunnels between Chembur and Bhandup, seven Sewerage Treatment Plants (STP), waste to energy projects at Mulund and Deonar dumping ground, augmentation of sewerage network in the city. Ongoing road works will also be completed,” said an official.
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