Surat Municipal Corporation's budget for 2011-12 revised by Rs47 crore

The standing committee on Tuesday finalised Surat Municipal Corporation's budget for 2011-12 with some minor deductions and additions. The committee mostly accepted tax hikes proposed by civic authorities. However, it has completely removed the slab on property tax. The budget's allocation was raised by Rs47 crore, while the revised budget for 2010-11 was also modified.

Ignoring the amount of capital works done in 2010-11, the rulers hiked the budget for capital projects to be undertaken and also added new projects. The standing committee passed budget of Rs2426 crore, as against the proposed Rs2379 crore by civic authorities. Provision under all heads revenue expenses, revenue income and capital income were also increased marginally.

Removal of property tax and educational cess slab completely was the major change. SMC officials proposed an income of Rs22 crore - property tax 17.50 crore & educational cess Rs4.53 crore, though these slabs was not accepted by standing committee."We have completely accepted the hike proposed by civic officials in user charges and so I think, there is no reason for charging property tax and educational cess.

According to an MoU under a JNNURM scheme, we have to attain 100% operational and maintenance costs through user charges, which we are doing," said, Mukesh Dalal, chairman, standing committee.

SMC had proposed an income of Rs52 crore through user charges. The new addition of street light charges was also accepted by the standing committee. Proposed hike in theatre taxes by civic officials was also accepted by rulers.