* In the past 10 years, there
has not been a single occasion when the budget estimates of either civic
administration or the political leadership have come true
By Kartik Lokhande
One should dream big, it is said.
But, it is also said that one should work pretty hard to turn the dream into
reality. As far as Nagpur Municipal Corporation (NMC) is concerned, it believes
in dreaming big but not in taking steps to realise the big dream. A look at the
budget estimates of both – the civic administration and Standing Committee
(political leadership) – prove this point.
Often, one hears that the budget
of NMC is ‘inflated’ or ‘unrealistic’. The budget estimates of civic
administration are revised by Standing Committee (political leadership), and there
have been intermittent rounds of blame-game between civic administration and political
leadership. However, irrespective of claims made by both the sides, the truth
remains that not once in past 10 years has NMC been successful in achieving the
same mark in budgetary estimates and actual results the next year.
Since 2004-05, Municipal
Commissioner’s budget estimates have been revised always by the Standing
Committee. However, neither the civic administration nor the Standing Committee
has been successfull in turning the ‘dream budget’ into a reality. “This has
become a regular feature as the administration and political leadership both
fail to gauge the hard realities of liabilities and revenue sources. As a
result, there is less-than-projected realisation of revenue under one head or
the other, at the end of every financial year. This affects NMC’s capacity to
meet the liabilities,” said a source familiar with the issue. He added that non-realisation
of the projected budget estimates at the end of financial year, year after
year, reflected poorly on the financial management of NMC.
If one takes a look at the budget
estimates of Municipal Commissioner’s budgets over the years since 2004-05, and
the actual targets achieved, it becomes clear that actual results at the end of
financial year have been lesser than the projected budget figure. The closest
that civic administration’s budget could get to reality was in 2004-05. Then, Municipal
Commissioner’s budget was of Rs 339.56 crore and the actual result at the end
of the financial year was Rs 338.04 crore. Thus, there was difference of only
Rs 1.52 crore between the administrative projection of budget and reality. The
same year, Standing Committee had revised the administrative budget of Rs 339.56
crore to Rs 524.36 crore. The administration’s estimates were thus revised
upwardly by Rs 184.80 crore. The result was obvious – at the end of financial
year 2004-05, the difference between budgetary projection of Standing Committee
and actual result was a whopping Rs 186.32 crore.
This has been the case over the
years, without an exception. In 2011-12, for the first time, NMC’s budget went
beyond the mark of Rs 1,000 crore. Municipal Commissioner had proposed a budget
of over Rs 1,087 crore, Standing Committee revised it to Rs 1,187.12 crore.
However, as neither the administration nor the political leadership had paid
heed to ground realities, both failed in their projections. As a result, the
financial result for the financial year was Rs 815.49 crore only. This was Rs
272.25 crore less than the projection of Municipal Commissioner and Rs 379.54
crore less than the estimates of Standing Committee.
Unfortunately, despite repeated
failures, neither the civic administration nor the political leadership has
given the financial management of the civic body a serious thought. In 2013-14,
civic administration had proposed a budget of Rs 1,232.47 crore, which was
revised upwardly to Rs 1,401.37 crore by Standing Committee. But, the provisional
figures that have been compiled recently are around Rs 850 crore only. Of
course, civic administration and political leadership both have been blaming the
imposition of Local Body Tax (LBT) for the fall of revenue. Still, one wonders how
Standing Committee can propose even higher budget for the financial year
2014-15. The administration has proposed a budget of Rs 1,061.40 crore, but
Standing Committee has raised it to Rs 1,645.02 crore, making various new
announcements and ‘expressing confidence’ that NMC’s revenue would increase.
Isn’t NMC still engaged only in dreaming
big, without much emphasis on getting realistic?
NMC’s budget in past
10 years and this year
---------------------------------------------------------------------------------------------------------------------------
Financial Year Mpl Commr’s Standing
Committee’s Actual
budget
estimates budget
estimates (revised)
---------------------------------------------------------------------------------------------------------------------------
2004-05 Rs 339.56 cr Rs 524.36 cr
Rs 338.04 cr
2005-06 Rs 507.25 cr Rs 554.84 cr
Rs 396.39 cr
2006-07 Rs 476.16 cr Rs 534.89 cr
Rs 460.96 cr
2007-08 Rs 498.54 cr Rs 602.29 cr
Rs 449.74 cr
2008-09 Rs 628.76 cr Rs 784.68 cr
Rs 508.96 cr
2009-10 Rs 747.36 cr Rs 869.23 cr
Rs 654.71 cr
2010-11 Rs 824.54 cr Rs 1187.33 cr
Rs 807.79 cr
2011-12 Rs 1087.74 cr Rs 1187.12 cr
Rs 815.49 cr
2012-13 Rs 1109.96 cr Rs 1286.28 cr
Rs 940.12 cr
2013-14 Rs 1232.47 cr Rs 1401.37 cr
Rs 850 cr (provisional)
2014-15 Rs 1061.40 cr Rs 1645.02 cr
--
---------------------------------------------------------------------------------------------------------------------------
Need to get more realistic: Mpl Commr
When ‘The Hitavada’ talked to
Municipal Commissioner Shyam Wardhane said that NMC needed to get more
realistic and hence the administration has been submitting a budget that was
closer to reality. Asked about Standing Committee increasing the administration’s
budget, Wardhane said, “We propose realistic budget, they propose optimistic
budget.” On why NMC failed in achieving the budget figures at the end of
financial year, the Municipal Commissioner said that several schemes or works
are announced in a year and this created liabilities for the next year. As a
result, the revenue in next year’s budget is consumed in clearing the
liabilities and only attempts could be made to meet the demand for
developmental works in current financial year.
Supportive State Govt, tough decisions needed: Mayor
Mayor Prof Anil Sole, who knows NMC
very well and has served in various capacities, felt that difference in actual
result of a financial year and projections of administration as well as
political leadership was on account of one simple reason – projections were only
‘estimates’ and not actually ‘budget’.
The administration has to propose
its estimates considering its constraints and Standing Committee has to consider
the developmental needs and aspirations of the people, Sole said. Still, financial
management could have been better if the State Government had been supportive, he
added. According to him, State Government did not have proper analysis and understanding
of the issues confronting the civic bodies. “On various occasions, State
Government has taken decisions that would hamper revenue collection of NMC. The
latest one being replacement of octroi with Local Body Tax. Since imposition of
LBT, NMC’s finances have taken a hit,” he said.
Sole, who is also MLC, said that expenditure
component could be controlled and revenue could be increased if the
administration did its bit. “At present, NMC’s administrative expenditure is 67
per cent. This needs to be curtailed, as this leaves very little for carrying
out developmental works and meeting the aspirations of Nagpurians. Besides, rationalisation
of taxes and concerted efforts of administration to realise the revenue are
other steps that are needed to improve the situation,” he said. Also, he added,
civic body will have to take some ‘tough and unpalatable’ decisions to restore
financial discipline and put Nagpur on fast track of development in future.
(Published in The Hitavada CityLine on July 27, 2014)
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