PUNE: It has done it again. Since more than a decade now, the Pune Municipal Corporation’s (PMC) Standing Committee has been inflating deficit budgets presented by civic administration.
The ‘corrected’ draft of the 2020-21 budget that the Standing Committee presented to be civic body on Wednesday has estimated that the civic body will mop up a whopping Rs 1,100 crore plus in addition to what the administration earlier had expected.
Looking forward for additional income the Standing Committee also has promised a number of developmental schemes for the citizens.
The available budetary statistics show that since more than last 10 years, there has been a considerable gap between the estimated revenue collection and actual amounts coming to the civic coffers. Civic sources attribute this situation to municipal corporation’s failure to find income sources going beyond the traditional sources like property and other amenities taxes, government aid for Goods and Services Tax (GST) and development taxes.
PMC WORRIED
Commenting on the situation, a senior civic official said, “It is a challenge for the PMC to increase its revenue. The administration has been presenting deficit budgets since last few years. In current fiscal, income expected in the budget has been Rs 6,085 crore. The prevailing figures show that the civic body might touch Rs 4,500 crore mark and the end of fiscal year is just a month away.”
It is very difficult to implement the ‘corrected’ draft of the budget if we look at our revenue collection,” the senior civic official added.
REVENUE SUGGESTIONS
Standing Committee Chairman Hemant Rasne, however, is confident. “I have formed a revenue committee to generate revenue from different sources. The committee has also given some suggestions and we will fulfill promises we have made,” he told Sakal Times.
According to Standing Committee Chairman Hemant Rasne, measures like allowing developers to pay building development charges in three stages, advertising at gardens, flyovers and river bridges, widening of narrow roads and allowing redevelopment projects may work and generate more income.
Hemant Rasne also has suggested an amnesty scheme to boost property tax collection.
It may be recalled here that earlier, the administration’s proposal to hike property tax by 15 per cent hike what turned down by the corporators. The last property tax hike was effected 2015-16.
THINK PRACTICALLY
Former Standing Committee chairman and corporator Vishal Tambe said, “It is time to think seriously and present a practical budget. Since the last five years, the budget estimates coming from Standing Committee are showing increase on the income side. The deficit too is increasing. Normally, every Standing Committee chairman is able to implement around 30 to 40 per cent of the budget. As per the financial condition of the PMC, it looks difficult to implement the Standing Committee’s budget.”
