JOIN USThe Bruhat Bangalore Mahanagara Palike (BBMP) has been registering revenue shortfall during the past five financial years, together amounting to Rs 18,650 crore less than the expected revenue.
During the current financial year, as on January 31, the BBMP has seen a shortfall of nearly Rs 7,000 crore in its revenue collection. This amounts to nearly 70 per cent dip in the anticipated revenue collection for the current fiscal which is Rs 9,730 crore. The actual earnings have been placed at Rs 2,854 crore.
The BBMP’s revenue collection has been plummeting since 2008.
From a shortfall of Rs 335 crore in 2008-09 to Rs 6,875 crore in 2012-13, the Palike has been reeling under the pressure of deficit in revenue collection while its expenditure has been increasing. However, due to ‘manipulation’ in the non-tax revenue receipts and ‘carry forward’ projects,’ the Palike has maintained a surplus budget. According to norms, an urban local body should show only a surplus budget and not a deficit one.
According to Institute of Social and Economic Change(ISEC) director R S Deshpande, if the BBMP is facing a shortfall in revenue then the situation has to be arrested immediately by increasing its credit in the non-tax revenue sector.
“With barely a month left to prepare the estimates for the next financial year, it is imperative for the BBMP to prepare and increase its credit towards non-tax revenue. With the tax revenue receipts already calculated, it has to depend on the non-taxable revenue receipts,” he said.
Despite huge revenue losses, the BBMP has stated that it will require close to Rs 15,000 crore for the City’s infrastructure development as part of its vision map for the next three years.
Of this, the majority of the expenditure would be incurred on construction of grade separators, development of arterial and sub-arterial roads and other road infrastructure, including elevated corridors.
The expenditure for the construction of these infrastructure projects is placed at Rs 6,500 crore. However, the BBMP has sought a miserly allocation of only Rs 575 crore for education, health, pedestrian safety, road widening and construction of signal free corridors.
‘Conservation of heritage, culture and environment’ is also included in the BBMP’s vision map and the civic body is looking at an allocation of Rs 100 crore for the purpose.