Funds-starved BMP waits for financial panel grants

Funds-starved BMP waits for financial panel grants

The Hindu

Only Rs. 125 crores collected as property tax in the first half of this financial year

# Government cuts grants by Rs. 56 crores
# Civic body unable to levy solid waste management cess and infrastructure cess
# Members blame officials for cut in grants
# Rs. 207 crores released for development works
# Bills of Rs. 70 crores to be cleared

BANGALORE: Is the Bangalore Mahanagara Palike (BMP) cash starved?

At least this is what members of the BMP Council feel. They are worried about the resultant delay in implementation of development works in their wards. But the officials, who refuse to agree with the members, have their own explanation.

As against the expected Rs. 320 crores revenue mobilisation through property tax, the BMP has managed to collect only Rs. 125 crores till the end of the first half of the financial year. Though this is a little more than last year's collection, sources in the BMP said it is not enough to meet the routine expenses of salaries and interest on loans.

The BMP is waiting for enhanced grants as recommended by the Second Finance Commission for urban local bodies. "We do not know how much the BMP will get this year. The Government has already cut our grants by Rs. 56 crores annually. The grants were cut after the Stamps and Registration Act was amended and we were deprived of over Rs. 120 crores in the last two years," the sources said.

Besides, the civic body is not been able to levy the proposed solid waste management cess and the infrastructure cess this year.

It is still waiting for approval from the State Government for exempting owners of two-wheelers and three-wheelers and 30 X 40 sites from paying the new levies.

But the members blame the officials for the cut in grants. "If our officials make a little extra effort, there is immense scope for getting enhanced government grants and also increasing our property tax collections.

We have been asked to go slow on development works under the special development funds and MLA grants allocated in this year's budget. We had planned several works in our wards and it is unfortunate we are not able to implement them on time," Bharatiya Janata Party floor leader B.M. Mangala said.

Referring to a circular pertaining to this matter, she said: "We would have started our annual programme of works usually by this time of the year. But ward works have not started except in a few areas."

A senior official in the BMP's Finance Department told The Hindu on Tuesday that Rs. 207 crores has been released for development works all over the city this year.

"While Rs. 61 crores has been released towards ward works, Rs. 10 crores has been released for works under the 18 per cent grants. Rs. 30 crores for road upgradation and Rs. 45 crores for footpath remodelling. This apart, another Rs. 61 crores has been released for works under the special development funds," he said.

"This means, each ward has been permitted to take up works for Rs. 1.46 crores. October is a critical month for us, and we have to clear pending bills of over Rs. 70 crores to private contractors. The situation will be stabilised after November," he added.