BMC's crores to lapse in 4 months

Four months away from the next fiscal year, the civic body has two-thirds of its annual budget, allocated for project works, untouched and ready to lapse if unused

With four months separating the BMC from its next budget release, the civic body has used just over 30 per cent of the sum earmarked for its infrastructure projects in the city.

Of the BMC's total budget of Rs 20,417.31 crore, Rs 4,865 crore was reserved for projects meant to develop and maintain infrastructure in the city for the year 2010-11. Only Rs 1,550 crore out of this has been used so far.


BMC officials say that the state government is not giving its permission to sanction the loan which has resulted in the delay of its project works in the city

With less than a third of the total funds spent and a quarter of the year left to put it to use, BMC's various project works in the city are lagging behind, say officials.

And who's to blame? BMC's Standing Committee attributes the underutilisation to the state government, saying it is holding back Rs 3,000 crore worth of funds by not sanctioning an internal loan for the BMC.

Every year, the BMC's budget capital is deposited in banks, against which it can take a loan, to be repaid before the next fiscal year.

But the loan has to be cleared after the state government gives its permission by signing a no-objection certificate.

Projects suffering

Despite the fact that the BMC pumped in an extra Rs 300 crore into the funds set aside for projects reportedly on the civic body's priority list this year it is now behind schedule owing to the lack of capital.

Moreover, the funds, if unused before the end of this fiscal, will lapse. "It will be difficult for the projects to get done now. If the funds are not utilised, they will lapse," said a BMC official from the accounts department.

In November, BMC's Roads Department was given an additional Rs 500 crore after an initial allocation of Rs 900 crore.

The budget for the repair of potholes was, not surprisingly, also increased to Rs 60 crore from Rs 40 crore last year. The extra funds are not there at the BMC's disposal and road works had come to a halt.

Although, an official from the BMC's Roads Department said that work was stalled for four months due to the monsoon.

Shewale, though, is certain about seeing the projects through after getting the funds from elsewhere.

"The BMC would get good revenue from the Octroi collection and that money will be used for projects.

Also because of the new property tax law, the revenue will go up," said Shewale. He added that if the Sixth Pay Commission's recommendations are implemented, the salary of Class IV employees would be hiked, which will set the budget back by a considerable amount, despite an accompanying budget increase of Rs 1,500 crore.

BMC says

Chairperson of the Standing Committee, Rahul Shewale, said, "The Corporation does not have adequate funds to carry out the work because of the state government.
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BMC has been taking this loan for the last 16 years. After utilising it, it deposits the money back in the banks.
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But this year, the state government has yet not cleared the Rs 3,000 crore loan because of which there is a delay in project works."

Accusing the government of playing politics, Shewale said, "They just want to show that the saffron coalition is weak and cannot complete project works.
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Had they cleared the amount, the work would have been done on time."

Did you know?
70 per cent of the total budget of the BMC is used to pay pensions, salaries, administration, operational and maintenance works of various departments at the ward level

Big drain

Of the BMC's total budget of Rs 20,417.31 crore, 70 per cent is used to pay pensions, salaries, administration, operational and maintenance works of various departments at the ward level.

The second largest single claimant to the BMC's total budget was its Water Supply and Sewerage Department, also on its priority list.

Of the sum of Rs 3,371 crore set aside for it, only around Rs 1,050 crore has been spent for works on pipelines.u00a0

Project Works
BMC's infrastructure projects include work done for the upkeep of the city. The money is divvied up between its various departments in charge of beautification, solid waste management, disaster, storm water drains, roads and hospitals, markets and gardens, mechanical and electrical works, fire, education, city engineering (or PWD), and information technology (IT).

BMC's budget for infra projects
Rs 4,865 cr

Amount theu00a0BMC has spent in 8 months
Rs 1,550 cr