Govt insists on more infrastructure, gives no funds

Govt insists on more infrastructure, gives no funds
New Indian Express

BANGALORE: The Government recently revised Bangalore City Corporation (BCC) budget with Rs. 91.21 crore reallocations for city roads. But this was a mere budgetary adjustment without fresh funding. With Government grants to the civic body progressively dwindling over last five years, its commitment to make Bangalore an international destination has come under scanner.

Going by the figures, Chief Minister Dharam Singh seems to be not so ‘garam’ about making Bangalore an international destination.

The delay in approving recommendations of Second state Finance Commission helps only to reinforce the doubt. According to sources, the Commission recommends allocation of 20 percent of its revenue contributions of about Rs. 18,000 crore to the State exchequer.

In 2004-05, BCC received Rs. 42.91 lakh as government grant while its total revenue was Rs. 729.7 crore of which Rs. 211.55 crore was from property tax but the civic body had to make a total payment of Rs. 764 crore of which Rs. 361.46 crore was for infrastructure and engineering works.

The situation would worsen in the future if the Government does not give the city’s share in its total revenue contribution of about Rs. 18,000 crore, say BCC sources.

‘‘How can the Government expect us to build flyovers and widen roads if it cannot give us appropriate grants? The stormwater remodeling alone is going to cost BCC Rs. 600 crore,’’ said a BCC official.

The revenue situation of most of the civic bodies in the state received a major jolt in 1979 when the Government withdrew octroi which comprised nearly half of the revenue of BCC. Though the State is compensating for the loss, it is not rational, said City Mayor R. Narayanaswamy.

Another blow came two years ago when the surcharge on stamp duty was slashed bringing BCC earnings from this account down to Rs 8 crore from Rs 16 crore.

While the vehicle tax and entertainment tax have long vanished, the city’s development demands are growing.

Excluding central excise and corporate tax remittances, Bangalore contributes over Rs. 18,000 crore to the State’s exchequer but it gets a mere Rs. 42 lakh as grants and the government does not even bother to assist BCC in servicing its debts. But the civic body is blamed for all the ills of city infrastructure, said Narayanaswamy.

Further, Bangalore cannot be treated as any other city in the State. It has to be given adequate resources in keeping with its global reputation. If the city has to have the best of infrastructure, it has to have the best of resource allocations. But is the Government interested?