The amount varied from Rs 25,000 crore to 37,000 crores in the last six years, but Brihanmumbai Municipal Corporation (BMC) has managed to spend not more than Rs 5000 crores on projects.
Whatever the amount allocated in the budget, the capital expenditure of the civic body has remained the same over the last few years. The amount varied from Rs 25,000 crore to 37,000 crores in the last six years, but Brihanmumbai Municipal Corporation (BMC) has managed to spend not more than Rs 5000 crores on projects.
Revenue expenditure includes the smooth running of department and various services like payments of employees, interest on loans, pension fund etc. Broadly the revenue expenditure does not create any assets. On the other hand capital expenditures are associated with fixed assets, which are expected to be productive for a longer period of time such as road, water pipelines, sewage treatment plant, buildings (schools, hospitals) constructions, machinery etc. So though the revenue is essential for day-to-day work the city's infrastructure and future depends upon the type, size and speed of the project work.
The BMC, which is considered to be the richest civic body has been constant in its capital expenditure over a few years. In 2016-17 despite the huge provision, the expenditure on capital decreased drastically because of the roads and nullah cleaning scam that hit the civic body. "Despite manpower, the capital expenditure doesn't increase because of misplaced priorities and vision," said Milind Mhaske, director Praja Foundation.
James John from NGO AGNI, told DNA, "Capital expenditure on roads or water pipeline are of utmost importance for the next few years. But the civic body is spending more on salaries and repairing. It needs proper planning and implementation to ulitise the amount allotted." Due to increase in the inflation rate, the expenditure remained the same. "Even the project like the coastal road which gets a huge provision will not benefit common citizens. Many projects like Brimstowad got delayed which led to increase in cost," added Mhaske.
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