BBMP revenue generation falls short of budget target

BBMP revenue generation falls short of budget target

BBMP revenue generation falls short of budget target

Even as the Bruhat Bengaluru Mahanagara Palike is gearing up to present its budget on March 25, it has come out that the local body has been able to implement only 40% of its previous budget proposals.

The BBMP had presented a budget with revised estimates of Rs 9,353.1 crore and had expected receipts of Rs 9,351.03 crore for 2016-17. However, the resource mobilisation so far is claimed to be about Rs 6,000 crore, which includes Rs 3,800 crore received from the state government.

The budget implementation report will be released only on the day budget for next fiscal year is tabled. However, Palike officials and corporators say that the realisation of the budget in terms of revenue generation and implementation of public works is no different from those of previous years.

“Many welfare schemes have not yet started except for the midday meal for pourakarmikas. The resource mobilisation is equally poor,” pointed out Padmanabha Reddy (BJP), leader of the Opposition in the BBMP Council. He said that the state government had agreed to give Rs 7,300 crore to BBMP over a period of two years (2016-17 and 2017-18). However, the Palike has so far received Rs 1,327 crore. A Palike officer said work orders had already been issued for the projects for which the funds were promised by the state government.

Manjunath Raju, former chairman of committee on taxation and finance, pointed out that Rs 2,100 crore received as property tax this year includes arrears and cess, while the actual property tax is just around Rs 1,800 crore. “Despite an increase in property tax by more than 25% this year, the revenue has stagnated at Rs 2,100 crore. During the BJP regime in Palike, the revenue collection was Rs 1,900 crore,” Raju said.

However, M K Gunashe-khar, the present chairman of the committee, claimed that the implementation of budget this year is about 65%.

“We could mobilise about Rs 6,000 crore against the revised estimate of Rs 9,353 crore. The revenue from OFC, betterment taxes and advertisement revenue did not match our expectation,” he admitted.

Raju alleged that the Palike diverted the funds earmarked for the welfare of Scheduled Castes and Scheduled Tribes, which was against the constitutional provisions. No programme for the welfare of SC/STs has been launched in the last two years.
DH News Service

Heads                          Estimate                 Received
Property Tax                Rs 3,323.78 crore     Rs 2,100 crore
Advertisement              Rs 146 crore             Rs 35 crore
Markets                        Rs 58 crore              Rs 40 crore
Town Planning               Rs 517 crore            Rs 350 crore
OFC                             Rs 407 crore             Rs 200 crore
Betterment charges       Rs 247 crore              Rs 160 crore
Special state grants       Rs 7,300                  Rs 1,327 crore

Namma Mane for SC/ST offering Rs 4 lakh to each beneficiary
Financial aid to skilled labourers under Kayaka Yogi scheme
Sandhya Kuteera to construct old-age homes for needy senior citizens
Special hawker zones for street vendors
Welfare schemes for transgenders
CCTV cameras in BBMP schools
Beautification of medians and junctions