<p>Bengaluru: One of <a href="https://www.deccanherald.com/tags/bengaluru">Bengaluru</a>’s city corporations is facing a significant financial shortfall in its first year of operation, raising questions about the viability of creating a separate municipal body that is not self-sustainable.</p>.<p>According to the State Finance Commission (SFC) report, the Bengaluru West City Corporation recorded a revenue deficit of Rs 84.79 crore. This shortfall could affect its ability to pay salaries, meet administrative expenses, and maintain operational costs.</p>.<p>In contrast, the Bengaluru East City Corporation is running a revenue surplus of around Rs 406 crore.</p>.<p>The three-member SFC, constituted by the government, analysed the budgets of the five city corporations to assess their financial strengths and weaknesses. The 200-page report finds that, except for the West Corporation, all other corporations have adequate surpluses.</p>.Bengaluru East Corporation to instal solar systems on its offices.<p>The commission highlighted that the East City Corporation, despite having the lowest projected population (16.29 lakh), contributes the highest revenue. By comparison, the West Corporation generates the lowest revenue while serving the largest population (52.27 lakh) among all corporations.</p>.<p>“The magnitude of budgetary requirements for even the provision of basic services and their maintenance is significantly high in the West,” the report notes, pointing to large service-level gaps.</p>.<p>“Per capita revenue collection in the East Corporation is as high as Rs 5,780, compared with just Rs 1,601 in the West City Corporation,” the report underlines. “High economic activity in the East boosts per capita revenue, whereas the West has a low revenue base due to a large residential population and limited high-tech revenue-generating activity.”</p>.<p>The commission recommended that the West Corporation, being the largest in area and financially weak, should receive financial support from the government. It also flagged concerns about the North Corporation’s finances. Recommendations include revenue deficit grants and special state infrastructure grants to ensure adequate service delivery and development in the West.</p>.<p>V Ravichandar, a member of the BBMP restructuring committee, said the financial situation of all five corporations is expected to improve once the elections are held.</p>.<p>“The corporations will receive funds from the Central Finance Commission and State Finance Commission once the elected bodies are in place,” he noted, adding that the financial condition of the West Corporation is not as dire as initially feared.</p>.<p>Sources in the government believe the restructuring could have been planned to make all corporations self-sufficient for basic expenses, with government grants ideally reserved for infrastructure projects.</p>
<p>Bengaluru: One of <a href="https://www.deccanherald.com/tags/bengaluru">Bengaluru</a>’s city corporations is facing a significant financial shortfall in its first year of operation, raising questions about the viability of creating a separate municipal body that is not self-sustainable.</p>.<p>According to the State Finance Commission (SFC) report, the Bengaluru West City Corporation recorded a revenue deficit of Rs 84.79 crore. This shortfall could affect its ability to pay salaries, meet administrative expenses, and maintain operational costs.</p>.<p>In contrast, the Bengaluru East City Corporation is running a revenue surplus of around Rs 406 crore.</p>.<p>The three-member SFC, constituted by the government, analysed the budgets of the five city corporations to assess their financial strengths and weaknesses. The 200-page report finds that, except for the West Corporation, all other corporations have adequate surpluses.</p>.Bengaluru East Corporation to instal solar systems on its offices.<p>The commission highlighted that the East City Corporation, despite having the lowest projected population (16.29 lakh), contributes the highest revenue. By comparison, the West Corporation generates the lowest revenue while serving the largest population (52.27 lakh) among all corporations.</p>.<p>“The magnitude of budgetary requirements for even the provision of basic services and their maintenance is significantly high in the West,” the report notes, pointing to large service-level gaps.</p>.<p>“Per capita revenue collection in the East Corporation is as high as Rs 5,780, compared with just Rs 1,601 in the West City Corporation,” the report underlines. “High economic activity in the East boosts per capita revenue, whereas the West has a low revenue base due to a large residential population and limited high-tech revenue-generating activity.”</p>.<p>The commission recommended that the West Corporation, being the largest in area and financially weak, should receive financial support from the government. It also flagged concerns about the North Corporation’s finances. Recommendations include revenue deficit grants and special state infrastructure grants to ensure adequate service delivery and development in the West.</p>.<p>V Ravichandar, a member of the BBMP restructuring committee, said the financial situation of all five corporations is expected to improve once the elections are held.</p>.<p>“The corporations will receive funds from the Central Finance Commission and State Finance Commission once the elected bodies are in place,” he noted, adding that the financial condition of the West Corporation is not as dire as initially feared.</p>.<p>Sources in the government believe the restructuring could have been planned to make all corporations self-sufficient for basic expenses, with government grants ideally reserved for infrastructure projects.</p>
