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Narendra Borkar to present civic budget on June 30
NARENDRA Borkar. Chairman of Standing Committee of Nagpur Municipal Corporation (NMC). will present the civic budget before the general body at 11 am on June 30.I he financial condition of NMC is pathetic and it is interesting to sec how Borkar maintains balance between rising requirements of developmental expenditure and falling revenue. The income of local body dipped by Rs 500 crore in 2013-2014. The budget was delayed due 10 model code of conduct for Lok Sahha and Nagpur Division Graduates' Constituency electioas being in force. With the Legislative Assembly elections slated in September-October. Standing Committee chief has to face another model code of conduct, during which no new announcements can he made or no new work can be started.
The civic body is walking on a light financial rope to perform its obligatory duty as well to execute developmental works. The civic body has now sought Rs 2(K) crore from the State Government as 'gap funding' to maintain financial balance and carry on its duties without hindrance. Former Standing
Committee chief Avinash Thakre had presented budget of Rs 1.400crore and received only RsWO crores, a total loss of Rs 500 crore.Presently. NMCis in serious financial crisis and unfortunately it has failed miserably in tapping new revenue sources or in increasing its revenue from present sources. The revenue sources suggested by Municipal Commissioner were not taken seriously by the Standing Committee in view of ensuing election of Legislative Assembly. After enforcemem of Local Body Tax (LBT). the financial position of local body has gone from bad 10 worse due to increase in committed expenditure.
The civic body has somehow managed to pay monthly salary and pension to its employees and retired staffers though die date has been missed quite often. The committed expenditure of NMC 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 Orange City Water (OCW). Rs 75 lakh on petrol and dicscl. Rs 60 lakh on tele phone 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 towards Government loan.
Sources informed that NMC generated Rs 300 crore from LBT in last financial year. The projected income from LBT was around Rs 500 crore but due to stiff opposition from traders and business persons, the income reduced by Rs 200crore.
The civic body is walking on a light financial rope to perform its obligatory duty as well to execute developmental works. The civic body has now sought Rs 2(K) crore from the State Government as 'gap funding' to maintain financial balance and carry on its duties without hindrance. Former Standing
Committee chief Avinash Thakre had presented budget of Rs 1.400crore and received only RsWO crores, a total loss of Rs 500 crore.Presently. NMCis in serious financial crisis and unfortunately it has failed miserably in tapping new revenue sources or in increasing its revenue from present sources. The revenue sources suggested by Municipal Commissioner were not taken seriously by the Standing Committee in view of ensuing election of Legislative Assembly. After enforcemem of Local Body Tax (LBT). the financial position of local body has gone from bad 10 worse due to increase in committed expenditure.
The civic body has somehow managed to pay monthly salary and pension to its employees and retired staffers though die date has been missed quite often. The committed expenditure of NMC 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 Orange City Water (OCW). Rs 75 lakh on petrol and dicscl. Rs 60 lakh on tele phone 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 towards Government loan.
Sources informed that NMC generated Rs 300 crore from LBT in last financial year. The projected income from LBT was around Rs 500 crore but due to stiff opposition from traders and business persons, the income reduced by Rs 200crore.
Posted in: News 2014
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