Palike struggles to present surplus budget

Financial planning: A view of the BBMP council during the budget session on Monday.  DH PhotoThat became clear on Monday as the BBMP presented a “surplus” Rs 8,497-crore budget for the 2010-11 fiscal, after a six-month delay. 

Although the BBMP could collect only Rs 821 crore from property tax, advertisement tax and trade licence fee in 2009-10, marginally better than the Rs 753 crore accrued in 2008-09, its latest budget expects to raise Rs 3,279 crore this year.

The budget had to be “surplus” because the Karnataka Municipal Corporation Act, 1976, rules out a deficit one. The BBMP says it will ensure a surplus budget by borrowing heavily from financial institutions.

For the ruling BJP, it was the first opportunity to present what it described as a “people-friendly” budget. That the BBMP had only Rs 424 crore in its coffers was another matter. Besides loans, the BBMP is also banking high on the grants from the State and Central governments.

The budget, presented by chairman of the Taxation and Finance Committee PN Sadashiva, has also high revenue expectations from the Akrama-Sakrama scheme, if and when it is implemented.

The newly adopted global information system is expected to help the BBMP identify much more taxable assets and thus meet the higher target set for this fiscal. 

There were obvious voices from the Opposition asking how the Palike would manage its expenditures if the anticipated revenues do not fill the BBMP coffers. But Sadashiva said “the government will provide us with the funds if there is a shortfall.” While no new taxes were recommended, special development charges are to be levied on high value assets and on those who erect towers and dish antennae for commercial purposes.

Infrastructure projects for the City will get a big boost. On the agenda are 10 parking bays, a detailed project report preparation for a signal free road from Yeshwanthpur Circle to Outer Ring Road (3.5 km), a flyover from Sirsi Circle to Nayandhalli, as many as 50 underpasses, remodelling of the Kalasipalya Bus Stand, improvement of footpaths and development of approach roads to the international airport.

In pipeline
* Budget banks heavily on loans, govt grants
* Proposes ban on usage of plastic that is less than 20 microns in Bangalore.
* 147 markets to be renovated, 17 lakes to be developed.
* Big jump expected in property tax collection with GIS mapping.