"While this year (2015-16) can be a face-saving year, the state government plans to introduce the new tax replacing octroi in Mumbai and local body tax in other municipal corporations in 2016. Shiv Sena in the BMC will not be able to ensure that the new projects are taken to their logical ends due to a financial crunch. The situation may prove detrimental for the saffron party in the BMC," said sources.
With civic elections scheduled for 2017, Shiv Sena is wary of the administration's approach to showcasing its new projects to voters. But keeping in mind the state government's decision to abolish octroi, the cash-strapped civic body is keen on resorting to an austerity drive to save money to provide basic civic amenities for Mumbaikars.
Senior civic officials suggest that apart from new projects like Mulund-Goregaon Link Road and a new hospital in Bhandup, completing other limping projects will be the only focus of the civic administration.
"Incomplete BRIMSTOWAD project, increasing the bed capacity in existing Govandi, Shatabdi and Rajawadi hospitals, stressing more on setting up of sewerage treatment plants and completing the replacement of old water pipelines which the city needs badly are a few of the works which the civic administration has been talking about in for the past few budgets.
"While this year (2015-16) can be a face-saving year, the state government plans to introduce the new tax replacing octroi in Mumbai and local body tax in other municipal corporations in 2016. Shiv Sena in the BMC will not be able to ensure that the new projects are taken to their logical ends due to a financial crunch. The situation may prove detrimental for the saffron party in the BMC," said sources.
It is noteworthy that the Sena, which shares power in the state government, has a rocky relationship with its coalition partner Bharatiya Janata Party.
However, Sunil Prabhu, Shiv Sena legislative party's whip and ex-mayor of Mumbai, said that Sena will oppose the abolition of octroi if the state government does not give an alternative system to generate the same amount of revenue that Octroi generates for the civic body.
"BMC is an independent body and has been generating revenue for its own expenses. The authority has never asked for funds to run civic services. If the state government forces its way to introduce the goods and services tax, how will BMC provide citizens primary services. We will never expect this to happen," said Prabhu, who was also leader of the BMC house.
Prabhu said, "We (Sena) will never let this happen. We have several projects for the city and we cannot sacrifice them in the name of GST. The state government has not given a pending amount of more than Rs2,000 crore to the BMC for the services it has enjoyed. How can it guarantee the fair share?"
"We will ask the state government to lead the delegation to the Centre to explain how abolishing Octroi is not in Mumbai's interest. There is no clear-cut formula how the GST will be shared with BMC and how much money will BMC get each year to meet its own expenditure," Phanse said.
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