NMC trips on LBT target, stares at financial crisis

NMC trips on LBT target, stares at financial crisis

 

 

 LESS recovery in Local Body Tax (LBT) has financially crippled          Nagpur         Municipal Corporation (NMC) as it has incurred a shortfall of whopping Rs 250 crores in financial year 2013-3014. Now. the civic body it struggling hard for maintaining fine tune between recovery and income.

Recently, civic body has closed its tin.ni.ul account for FY-2013-2014. The effect of Local Body Tax (LBT) has taken a toll and NMC is in serious financial crisis and unfortunately. civic hody has miserably failed to tap new revenue sources or increase its revenue from present sources. The local body has total receipts of around Rs 800 crore and out of it. almost Rs 100 crore is received as Government grants. This means that only Rs 700 crore were in the coffer of local body. The total committed expenditure of NMC is around Rs 750 crore and civic body has sanctioned developmental works of Rs 200 crore in last financial year. The civic body has incurred loss of Rs 250 crore in last bY. Surprisingly, civic body did not take any austerity measures for reducing their expenses.

Sources claimed that civic body is walking on a tight financial rope to perform its obligatory duty as well to complete developmental work. The civic body has now sought Rs 200 crore from the State Government to maintain balance and carry on its duties without hindrance.After enforcement  of Local Body Tax (LBT)  the financial position of local body has gone from bad 10 worst due 10 increase in committed expenditure.

The civic body has somehow managed to pay monthly salary and pension to its employees and retired staffers, though the date has been missed quite often. The committed expenditure of SMC is Rs 60 crore per month including Rs 25 crore on salary. Rs 7 crore on pension. Rs 7 crore on electricity. Rs 1.5 crore on raw water. Rs 7.25 crore to OCW. Rs 75 lakh on petrol and diesel. Rs 60 lakh on telephone and security guards. Rs 1.5 crore on advance. Rs 4 crore on loan. Rs 2.5 crore on garbage lifting, and Rs 5 crore on Government loan.

Sources informed dial NMC generated Rs 300 crore from I.HT In this bY. The projected income from LBT was around Rs 500 crore hill due In stiff opposition from traders and business pcrsimis. (he income was reduced by Rs 200 crore. In spite of Municipal Commissioner Shyam Wardhane's efforts, the property lax department has generated revenue of Rs 190 crorc only. After LBT. this is a prominent income KMircc of NMC but employees failed to achieve 100 per cent recovery. Former Standing Committee Chief Avinasli Thakre and Tax Committee Chief Girish Dcshmukh had claimed to gener ate Rs 350 crore but they failed to achieve target. The ruling BJP led NVA has adopted dilly-dally approach In increasing revenue of local body by adopting value based property la*. The civic body has passed the resolution for implementation but ruling party is delaying its enforcement. This has led to major revenue loss of local body.
It may be mentioned that outgoing Standing Committee chair man Avinash Thakre had present ed an unrealistic budget of Rs 1,400 crore before the general

Posted in: News 2014