Leaking budgets

If you ask any household how to spend money, the instant reply would be that it should be within the size of a purse.

This simple economics, tried and tested for ages, does not impress the Bruhat Bangalore Mahanagara Palike (BBMP), which believes in spending more than its income.

In its pursuit of bigger expenditures, the Palike came out with unrealistic budgets every year with enough room for large-scale corruption. It burdened itself and its citizens under huge debts and finally mortgaged its properties. The poor financial management drew severe criticism from every quarter but the Palike authorities rarely took them to their heart. They continued to come out with lavish plans, which was never materialised in toto.

The last three years' budgets are self-explanatory. The Palike came out with lavish budgets in the last three years with outlays ranging between Rs 8,000 crore and Rs 10,100 crore. However, the realisation remained between 35 per cent 45 per cent. Last year, the Palike's outlay was about Rs 10,000 crore while the actual expenditure was close to Rs 3,800 crore.

These failures to garner funds did not stop it from coming out with even bigger plans. Sample this: Irrespective of the fact that the visitors to Bangalore are greeted by battered roads and pavements, reeking compound walls of government buildings in absence of toilets, ruined greenery and heaps of garbage everywhere, the BBMP intends to build eight welcome arches at the entrance of the City spending Rs five crore. It made loud statements about retaining the glory of Bangalore but forgot to make budgetary provision for lakes in this year's budget. The mistake was later corrected when the Palike engineers ran from pillar to post to get the funds allocated for lakes.

“Merely Rs 10 crore has been earmarked for the maintenance of 55 lakes in this year's budget,” says a Palike engineer.

Whatever impression the crater-size potholes may give, the fact remains that most of the Palike's funds are utilised every year on the 55,000 km roads and pavements in Bangalore. The poor condition of roads point to rampant corruption in the BBMP and disregard for transparency. In the last six years, numerous scams came to light but the Palike did not show any interest to take them to the logical end. This emboldened the deadly trio - Palike officials, contractors and the public representatives- to continue with their misdeeds.

Former chief engineer of the Technical Vigilance Cell under Commissioner (TVCC), N Devaraj, was targeted for being an honest officer. His impartial technical reports had led to the suspension of many Palike engineers and officers. During his tenure, he and his team members in the TVCC exposed scams to the tune of Rs 20,000 crore, with the fake bills scam alone running into Rs 10,000 crore. Owing to the sustained campaign against him, he had to take voluntary retirement.

Although retired, he thinks twice coming on record to give his comment, given the poisoned atmosphere created in the BBMP.

When asked about the way out for the BBMP to overcoming mismanagement, Devaraj says, “The Palike should first curb unnecessary expenditure.

“I have come across the fact that at least 40 to 45 per cent works are bogus. Good roads and pavements are repaired, if not on the field then at least on papers. Bogus bills are created, payments are made without proper scrutiny. Without financial discipline, I don't think the City would improve at all,” says Devaraj.

He emphasised on citizens' participation. “Today, in the name of citizens' participation, political party workers get a chance. We need to strengthen apolitical residents' welfare associations. There must be stringent punishment for those guilty of corruption charges, but tragically such people are given shelter today,” says Devaraj.

Former BBMP Commissioner Siddaiah emphasises on financial discipline and proper planning. His pursuit for financial discipline had led to his ouster from the BBMP in November 2011. He was shunted out unceremoniously for exposing the Rs 10,000-crore fake bills scam that had taken place between 2006 and 2010. Thanks to the garbage menace, the government was forced to bring him back to streamline the BBMP.

Siddaiah stresses that realistic budgets, strict collection of advertisement taxes, property taxes, rent from the telecom firms for laying Optical Fibre Cable (OFC) and proper usage of information technology can bring the BBMP's financial condition on track.

He also underlines the need to check bogus bills, duplication of works and substandard works to improve the financial health of the Palike.

Former Mayor, P R Ramesh blames the lack of vision and direction for the present mess in the BBMP.

He warns, “If we were to assess the problem, the City would turn into a 'mega Mandur', a connotation derived from BBMP's landfill.”

Ramesh says, “The City needs a plan for 360 degree growth but we don't have any planning. We prepare master plans every year just to fulfill certain rules and regulations.

The reality is that the City planners don't know the requirement of road, industrial growth, water requirement, possible influx of people in the next 50 years and the need to create more infrastructure facilities.”