The civic body is also looking forward to generating revenue through reimbursement of Covid expenditure, levying user fee under solid waste management, and digital advertisement apart from pending dues from the state government
Civic chief Iqbal Singh Chahal presents the BMC budget 2022-23. Pic/Suresh Karkera
The BMC Budget 2022-23 increased 17 per cent from the previous year to Rs 45,949 crore with the help of internal loans of Rs 14,704 crore, which is one third of the total amount. This is despite the lack of any constant source of revenue. There was no mention of any new tax but a revision of property tax was proposed. The BMC got a major boost from this year’s 35 per cent more income due to receipt of a development plan into the next year.
The civic body is also looking forward to generating revenue through reimbursement of Covid expenditure, levying user fee under solid waste management, and digital advertisement apart from pending dues from the state government.
The BMC estimated Rs 30,743 revenue from various sources for the 2022-23 financial year. This includes major sources like compensation in lieu of Octroi at Rs 11,429 crore and income from property tax at Rs 7,000 crore. But in the financial year 2021-22, revenue from property tax was revised from an estimated Rs 7,000 crore to Rs 4,800 crore due to relief to residential property up to 500 sq ft (carpet area) to the tune of Rs 462 crore per annum.
BMC chief I S Chahal said an internal loan has been proposed to meet the gap of income and expenditure. Pic/Suresh Karkera
Even the revision of capital value deferred for two years, leading to further reduction. The BMC budget has proposed to take an internal loan from fixed deposits of Rs 14,704 crore to meet the gap of income and expenditure.
The BMC had estimated Rs 27,811 crore income in 2021-22 including Rs 2,000 crore from the development plans. But as the state government curtailed the developed premium to be collected from builders by 50 per cent, the BMC received a whopping Rs 13,543 crore till January and estimated another Rs 1,207 crore in the next two months. This has boosted the estimated income from Rs 27,811 crore to Rs 37,538 crore in this financial year. However, even as BMC won the lottery this year, there isn’t any constant high yield revenue source in the next year.
Focus on high priority works
BMC chief I S Chahal said a policy to undertake only high priority works will be exercised so that the projects in the pipeline will not be hampered in any way due to paucity of funds.
“Considering the increasing liabilities of ongoing projects and special projects, obligatory duties, huge amounts will be required in the future. The completion of the significant projects will be hampered if sufficient funds are not made available during the ensuing years. Therefore, the necessity of raising internal loans to meet the expenditure on these projects has arisen,” Chahal added.
Measures to increase revenue
The major sources of revenue for 2022-23 are compensation in lieu of Octroi at Rs 11,429 crore, income from property tax at Rs 7,000 crore, income from Development Plan Department at Rs 3,950 crore, interest on investments at Rs 1,128.74 crore and income from water and sewerage charges at Rs 1,596.93 crore.
In addition, claims of Rs 1,417.32 crore and Rs 1,347.56 crore for reimbursement of Covid expenditure up to September 2021. BMC will explore additional sources of revenue income by allowing digital advertisement.
Total outstanding dues from the offices of various departments of the state government stood at Rs 6,768.16 crore, including Rs 4,840.61 crore from the Education department, till December 31.
Budget break up
Revenue income Rs 30,744
Internal loan/ special fund Rs 14,704
Sale proceeds/ premium of land etc. R501
Total Rs 45,949
Project Rs 3,200
Health Rs 2,660
Traffic and Roads Rs 2,200
Water Supply Rs 1,682
Bridges Rs 1,576
Storm water drain Rs 1,539
Sewerage Treatment plant Rs 1,340
GMLR Rs 1,300
Staff quarters Rs 1,300
Sewerage disposal Rs 1,169
Development plan Rs 1,002
Repairs of schools Rs 500
Solid Waste management Rs 377
Others Rs 2,798
Total Rs 22,646
(Figures in crore)