Palike builds castles in the air

Palike builds castles in the air
New Indian Express

BANGALORE: Bruhat Bangalore Mahanagara Palike (BBMP) has not kept many promises made by earlier budgets while many proposals that are touted to be first were initiated six years ago.

The budget outlay has grown from Rs 600 crore in 2002-03 to Rs 3312 crore in 2007-08, but the number of unrealised projects also have grown at the same rate.

Way back in 2002, Palike entered into an MoU with the State Government seeking grants based on reforms. The Rs 120 crore special grants were sanctioned but Palike is still in need of the reforms even as another reform linked central scheme, Jawaharlal Nehru National Urban Renewal Mission (JNNURM), is taken up in 2007.

The major reforms then envisaged were in accounts department. Palike had been practicing single entry system of accounting which changed to Fund Based Accounting System (FBAS) due to the MoU.

Even then, more than 40 per cent of ward works spilled over to next budget year while bills are generally paid after one year. It is a paradox that FBAS should sanction works when there are no funds.

FBAS is said to be as per internationally accepted GAAP (Generally Accepted Accounting Principle) standards.

In 2004, Palike proposed to start day care centres for the elderly but it remains a proposal even now. In the same year, Palike also proposed to bring out a flood management manual which never happened.

As Palike has no good recovery rate of property tax, BBMP had proposed three years ago to increase the penal rate of interest on arrears from 5 per cent per year to 24 per cent and to verify the property tax returns filed under Self Assessment System (SAS).

The interest rate remains at 5 per cent while SAS returns are being verified recently. There was a proposal in civic budget 2003-04 to introduce online payment of property tax and it is yet to log in.

Last year commissioner K Jairaj ran a publicity campaign asking owners to keep their vacant sites clean.

But in 2004, Palike did not implement a decision to clean all vacant site twice a year using earth movers and recover the cost from site owners.