CVS, Sakrama to stay: BBMP

CVS, Sakrama to stay: BBMP
DH News Service,Bangalore:
Call it a tax-free and realistic budget, but it has some disappointing news for property owners.

The budget of Bruhat Bangalore Mahanagara Palike (BBMP) for 2008-2009 presented on Friday confirmed the implementation of CVS, its new taxation system, and Sakrama — the controversial scheme under litigation.
Announcing a string of infrastructure projects, including elevated roads and roads over storm-water drains, with priority to completion of the ongoing projects, the budget has laid thrust on improved basic services for urban poor and a cleaner and greener environment for citizens.

The budget with an outlay of Rs 2,918.71 crore has set aside Rs 1,600 crore for providing infrastructure. While the new zones have got Rs 52 crore each for roads, drains, streetlights and other facilities, the allocation for the welfare of SC/ST communities has been increased from the last year’s Rs 60 crore to Rs 205 crore.
While 57 per cent of the outlay accounts for capital investments, 20 per cent would be spent on salaries and administrative expenses. A substantial investment of Rs 600 crore is envisaged on welfare schemes, education and health sectors. Setting aside conventions, BBMP Special Commissioner (Finance and Resources) Sandeep Dash presented the budget to Administrator Dilip Rau in camera.

Later, Commissioner S Subramanya read out the budget at a press conference. Claiming that this year’s budget was more “realistic” and “transparent”, the Commissioner said that for the first time the budget included an annual financial statement and an action-taken report on past proposals.

Less money

This year’s property tax target is Rs 605 crore, which is Rs 5 crore lesser than last year’s target.
“This is because shifting over to CVS will not put additional burden on every property owner,” the Commissioner said, refusing to give more details on the scheme.

Though this scheme (aimed at regularising unauthorised constructions and developments) is under litigation, the Palike expects a revenue of Rs 100 crore through the scheme this year.

More than three lakh properties are expected to be regularised under the scheme and this could result in an increased property tax flow, the Commissioner said.

Stressing that there was a shortfall in anticipated receipts during 2007-2008, Subramanya explained this was because of poor property tax collection.

Sandeep Dash said enough care had been taken to ensure that the Palike’s debts did not increase.
“We have an outstanding debt of Rs 700 crore. We are not taking any loans this time except for a loan of Rs 356 crore to match the JNNURM grants. We have ensured that we plan the budget with available resources,” he said.
“The divisible pool of the State Finance Commission had increased by Rs 500 crore as per the State Budget. Hence the devolution in favour of BBMP is expected at Rs 400 crore.