Mpl Commr presents ‘realistic’ civic budget


* Proposes Rs 1,294.75 cr budget for 2015-16, which is a ‘scaled down’ one compared to Rs 1,341.55 cr revised budget for the year 2014-15
* The revised budget for 2014-15 also scales down the budget of Rs 1,645.02 cr proposed by Standing Committee chairman this financial year
* Property tax set to be ‘rationalised’
* LBT to continue
* Municipal Commissioner visualises scheme to provide Chemotherapy facility to poor and needy cancer patients

Staff Reporter
Emphasising on need to focus on ‘rationalisation’ of tax structure and making Nagpur Municipal Corporation (NMC) ‘sustainable’, Municipal Commissioner Shravan Hardikar presented to the Standing Committee his budget for the financial year 2015-16. While scaling down NMC budget estimates for 2014-15 from Rs 1,645.02 crore to Rs 1,341.55 crore, Hardikar proposed a ‘realistic’ budget of Rs 1,294.75 crore for 2015-16.
“My focus is pretty clear. I wish to concentrate on good governance backed by e-governance, facilitating citizen services like making tax payment easier, and rationalising tax structures while delivering quality services,” Hardikar told the reporters while addressing a press conference on Friday evening after presenting a copy of the budget to Narendra Borkar, Chairman of NMC Standing Committee. At the same time, he said, Local Body Tax (LBT) will continue in 2015-16 also as NMC has not received any communication otherwise.
In 2015-16, Hardikar has proposed a budget with revenue of Rs 1,294.67 crore. This includes Rs 500 crore revenue from LBT, Rs 250 crore from property tax, Rs 125 crore from water user charges on metered connections, Rs 6.05 crore from Market Department, Rs 71.75 crore from Town Planning Department, and Rs 341.87 crore from ‘other income, loans, investment, advances etc’.
Municipal Commissioner has estimated expenditure in 2015-16 to be Rs 1,294.65 crore. This includes Rs 307.64 crore on establishment, Rs 24.96 crore on administration, Rs 95 crore on pension of retired employees, Rs 208.78 crore on operations/maintenance/repairs, Rs 602.82 crore as capital expenditure, Rs 55.45 crore on ‘other heads’.

Asked about the scaling down of the budget estimates for 2014-15 by Rs 303.47 crore -- from Rs 1,645.02 crore to Rs 1,341.55 crore -- Hardikar said that he had kept it at a ‘realistic’ level. Interestingly, in his speech, the Municipal Commissioner stated categorically that he did not notice any substantial increase in ‘revenue resources, recovery, new taxes, inherent competence’.

To a question on his budget estimates for 2015-16 being lesser -- at Rs 1,294.67 crore -- than the ‘revised estimates’ for 2014-15 at Rs 1,341.55 crore, Hardikar said that he expected more revenue and recovery in 2015-16. “Still, if comparisons are to be drawn, the revised estimates for 2014-15 include Rs 200 crore of loan component. If that is to be deducted, the revised estimates stand at Rs 1,141.55 crore. Compared to this figure, my estimate for 2015-16 is higher,” he explained.

Replying to another question, Municipal Commissioner said that NMC had clocked a revenue of Rs 825 crore till January 2015 including Rs 295 crore from LBT. Compared to even the revised estimates for 2014-15, the total revenue collection till January 2015 is Rs 516.55 crore lesser. Also, compared to estimated recovery of LBT at Rs 425 crore, the actual collection till January is 295 crore, which is Rs 130 crore less. Against this backdrop, will NMC be able to meet the ‘revised’ revenue targets in remaining two months of February and March of financial year 2014-15, remains a question.

Hardikar also emphasised on improving administrative functioning, enhancing dedication to work among officials and employees, preparing and implementing effectively ‘a plan for planned development’ of the city. To meet these goals, there is a need to strengthen the functioning of Town Planning Department. “We are inviting top planners of the country. If planning is better, development can be done properly, keeping in mind the benefits that the citizens will get in next 30 years,” he said.

As far as public utility lands are concerned, Municipal Commissioner said, several steps are to be taken including corrections in Development Control Rules (DCR), using space creatively, planning proper utilisation of available space, rational view-point on public utility. “But, in any case, illegal and not sanctionable things cannot be condoned,” he added when asked about violations that had taken place in the past. He also underlined the need for acquiring reserved lands.

Sanjay Kakde, Deputy Municipal Commissioner; Pramod Bhusari, Additional Deputy Municipal Commissioner; Prakash Urade, Superintending Engineer; Madan Gadge, Chief Accounts and Finance Officer, S S Hastak, Tax Assessor, and other officers also were present at the press conference.

Three new taxes proposed

As per the provisions of Maharashtra Municipal Corporation Act, the civic administration has proposed to introduce three new taxes in 2015-16. These include 3 per cent each as Water Benefit Tax and Sewerage Tax, and 5 per cent Street Tax. This will be part of property tax ‘rationalisation’. Already, a proposal for revised taxation has been submitted for policy decision and approval of general body. The water user charges also may be reduced from 40 per cent to 25 per cent, if number of metered connections increase. “For the purpose of putting development of the city on fast track, I appeal to the citizens to pay taxes properly and co-operate us,” said Hardikar.


Two new initiatives proposed

In his budget, Municipal Commissioner has proposed two new initiatives including a Chemotherapy centre for poor and needy cancer patients, and creating a network of concrete roads. “On the lines of dialysis centre, I have proposed to start a Chemotherapy centre for poor. For the purpose, we are exploring the possibility of making available a ward at Indira Gandhi Rugnalaya of NMC,” said Hardikar. Another plan is to create a network of concrete roads in the city. 

(Filed on February 20, 2015) 

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