Palike heckled over municipal bonds plan

Civic agency had proposed to raise Rs 1,000 crore

The proposal to raise Rs 1,000 crore through municipal bonds hogged the limelight on the third day of discussion on the Rs 9,498.90-crore budget of the Bruhat Bangalore Mahanagara Palike (BBMP).

Stating that the guidelines concerned prescribe that such bonds can be used only for capital investments in urban infrastructure, Janata Dal (S) floor leader T Thimme Gowda said: “The guidelines clearly state that the amount of issue of bonds will be approved on a case-by-case basis by the Union Ministry of Urban Development.”

The maximum amount of tax-free municipal bonds, he said, can be 50 per cent of the total project costs or Rs 300 crore, whichever is lower. “When this is the case, how will the Palike raise Rs 1,000 crore from bonds,” he asked, adding that the Mayor and the Commissioner should explain why there is no internal auditing system in the BBMP.

He also asked Mayor D Venkatesh Murthy when the Palike proposed to start collecting development charges. “Although property tax is the mainstay of the Palike, the government has not even hiked grants to the civic body when the jurisdiction was increased,” he said.

Opposition leader M K Gunashekar said: “Let the Standing Committee for Taxation and Finance re-examine the budget and present a more realistic one... By rejecting the budget and sending it back to the committee, the Mayor can also create history,” he remarked.

Kacharakanahalli councillor Padmanabha Reddy rubbished the budget and termed it a ‘loan repayment budget’.

With pending bills amounting to Rs 1,500 crore, spill over works of Rs 2,500 crore and loans of Rs 3,000 crore, Reddy asked how the civic agency was planning to implement the budget. “...add to this essential administrative expenses. The budget looks like its meant only for repayment of loans.”

Basavanagudi corporator B S Sathyanarayana, while speaking about the water crisis in the City, said the Palike, along with the State government should take up the project to divert water from the Hemavathi river to Thippagondanahalli. And for this, he suggested they float bonds besides seeking help from some of the information technology and
bio-technology companies.

He also suggested nominating four corporators to the BWSSB.
Pointing out the problems faced by the economically weaker section of the City, Gunashekar suggested that the Palike set up counters selling generic medicines in all its health centres besides setting up laboratories for ECG, diabetes and renal tests.

“This will make a huge difference to the urban poor and make health care accessible,” he said.