Wednesday, August 18, 2010

Budget delay? Blame it on funds crunch

Budget delay? Blame it on funds crunch
Bangalore, August 17, DH News Service:

Severe funds crunch has been delaying the budget presentation of the Bruhat Mahanagara Palike. The budget has not been presented even after four months since an elected body took over the administration.

“We are awaiting a date from the Chief Minister for discussion on sanctioning of funds and other issues,” Palike Mayor S K Nataraj said on Tuesday. He was hopeful that the budget will be tabled by September first week. The latest assurance comes at a time when nearly half the financial year has come to an end.

Most comfortable

Nataraj admitted that the financial condition has not been most “comfortable” for the BBMP over the past year with outstanding bills and payment to contractors amounting to Rs 1,900 crore.

The Palike is hoping to get additional funds of Rs 1,500 crore from the Government. The demand will be put forth during the meeting with Chief Minister, the Mayor said.

However, Nataraj was hopeful that the Rs 750 revenue accrued in the form property tax and an equal sum expected to pour in through Akrama-Sakrama scheme will stabilise the fiscal condition.

He said Rs 500 crore promised by the government in the budget is yet to be released. “We have not received any of the promised funds from the government since 2008,” he said.


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