Civic chief tables his first draft budget of Rs 6,085 cr

Siddharth Gadkari
Friday, 18 January 2019

The PMC draft budget for 2019-20 has introduced 12 pc hike in property tax

PUNE: The Commissioner of Pune Municipal Corporation (PMC) Saurabh Rao, on Thursday tabled the civic body’s annual budget of Rs 6,085 crore for 2019-20 fiscal. The budget has introduced a 12 per cent hike in the property tax and a 15 per cent hike in water tax. In addition, the PMC has also proposed mandatory user charges from Rs 50 to Rs 500 for garbage management. 

Since taking charge, the municipal commissioner presented his first annual budget of the civic body to the Standing Committee. As compared to last year, the budget has gone up by Rs 688 crore. In 2018-19, the annual draft budget was Rs 5,397 crore. The commissioner has proposed Rs 2,500 crore for development work out of which 60 per cent work is spillover from last year. The PMC has decided to enhance the quality of work and Rs 10 lakh has been earmarked for Impact Analysis and Social Audit. 

While speaking to the media, Rao said, “We have given thrust on uniform development of the city. Transportation, water and road development are the key features of the budget. We have allocated Rs 2,500 crore for development work.” 

Rao said that due to limited revenue sources such as property tax, GST, development charges, the PMC could not achieve the set revenue target. He claimed that similar situation was experienced by all municipal corporations. “Next year’s budget will be deficient. However, the revenue gap will be less as compared to this year,” Rao added.  

“To solve traffic problem is one of the major areas of the city. Hence, we have decided to start work of High Capacity Mass Transit Route  (HCMRT). We have allotted Rs 211 crore for the project. Besides that, We have decided to add 1,350 new buses in the fleet of Pune Mahanagar Parivahan Mahamandal (PMPML) which includes electrical and CNG AC buses,” he said.

He said that they have set a target to process all garbage till December 2019 and stop open dumping. The civic body has allotted more than Rs 138 crore for infrastructure development of 11 newly merged villages.

TAB NEW SOURCES TO INCREASE INCOME
The civic body has decided to collect arrears of property and water tax effectively which is almost Rs 3,000 crore and revised rent structure of civic properties. Besides that, the civic body is thinking of Reserve Credit Bonds (RCB) to acquire lands for major projects. The PMC will issue bonds to landowners instead of giving them cash refunds. 

Rao said, “We have mentioned in the budget that without permission from competent authorities, the budget should not be diverted. After all, money saved is money earned.”

INCOME TO INCREASE
- Property tax hike
- General tax- 5.5 pc for every slab 
- Water maintenance cess- 1.50 pc 
- Sewage treatment cess- 5.00 pc 
- Water tax hike - 15 pc 
- New tax - User charges for solid waste management on an annual rateable value of properties 

KEY DEVELOPMENT WORKS IN 2019-20 BUDGET
- High Capacity Mass Transit Route (HCMTR) 
- New 1,350 PMPML (Electrical and CNG) buses in the fleet 
- To start a riverfront development project 
- Sinhagad Road ‘Y’ shaped junction bridge 
- Rock garden, Lily garden and talking garden 
- PMC models for excellence five pilot schools 
- Safety mapping and safety audit for the security of women

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