The BMC is now eyeing a jackpot to bail itself out of the financial crisis. It has decided to demand a share of the betting tax collected by the state from horse racing events.
Betting charges are currently collected by the state government from organisers of horse racing events.
The richest civic body in the country is on the lookout for new sources of income to replenish its treasury, which has taken a beating due to recession and a hike in salaries for the employees. While the recessionary trend has led to a significant dip in BMC’s income, the increase in employees salaries after the sixth pay panel recommendations has caused the establishment costs to rise by Rs1,800 crore.
The finance department of the corporation had earlier decided to demand a 50% share in charges collected by way of stamp duty, registration fee, and professional tax. An official of the department said that another proposal to demand a 50% share in betterment tax, collected by the state from private parties for carrying out development and improvement works on public-owned land, was also being prepared.
The civic administration has justified the demand by claiming that it provided the infrastructure on the basis of which all these activities were taking place. To cut its own expenditure further, the civic body also plans to seek a waiver in customs duty and VAT charges for equipment being purchased for civic hospitals and the fire brigade. An official request for these demands will soon be made by the city mayor’s office, which presides over the BMC, in the near future.
The global meltdown has slowed income from revenue earners like the octroi and the development plan department, among others, upsetting BMC’s financial health. Keen not to end the financial year on a deficit, the civic administration has already imposed cuts on its expenditure. The cash crunch has also affected certain projects planned by the corporation.
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