BBMP presented inflated budget for 4 yrs: CAG report

BBMP presented inflated budget for 4 yrs: CAG report

The Comptroller and Auditor General (CAG) report on urban local bodies (ULBs) states that almost all the city corporations in the state had made unrealistic budgets over the past five years.

The report tabled in both the Houses of legislature has pointed out that Bruhat Bangalore Mahanagara Palike (BBMP) presented a highly-inflated and unrealistic budget from 2007 to 2011. Besides, the BBMP has been falling short in realising its targets of revenue generation as well as providing amenities to citizens.

 For instance, in 2010-11, the Palike had presented a budget of Rs 8,446 crore. However, the total revenue accrued from various sources amounted to barely Rs 3,326 crore. The resultant shortfall was a whopping Rs 5,120 crore, 61 per cent of the anticipated revenue. This led to a massive drop in achieving their targets as promised in that year’s budget.
The payments made by the BBMP towards various projects was only Rs 3,620 crore as opposed to the expenditure of Rs 8,862 crore. The CAG report noted that the shortfall in expenditure from 2007 to 2011 ranged from 17 to 59 per cent, “indicating preparation of unrealistic budget.”

Justifying the shortfall in revenue accrual, the Palike in its statement to the CAG in December 2012 had said: “ Higher revenue was expected due to the change in property tax assessment system and addition of new areas. However, it was not realised.” The BBMP did not provide its budgetary estimates and expenditures to the CAG for the year 2011-12.

In other civic bodies, 15 of which were “test checked,” the report has noted that in nine ULBs, there were highly ‘irregular’ expenditures made on roads. As against the total provision of Rs 144.36 crore, the 15 ULBs together incurred Rs 132.76 crore expenditure between 2009 and 2012. In six ULBs, collectively, the CAG has noted that a paltry Rs 38 lakh was spent on urban forestry, parks and gardens despite a provision of Rs 2.89 crore.

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