India’s civic bodies most fund-starved

BMC to draw money from its reserves to fund projects

geetanjali

Geetanjali Minhas | March 9, 2018 | Mumbai


#BMC   #Municipal Body   #Civic Body   #Municiapl Governance   #Mumbai  

BMC will for the first time draw money from its reserves to fund its ambitious infrastructure projects.

The richest civic body of the country will for the first time tap its fixed deposit resources of Rs 69,000 crore to fund infrastructure projects. ‘The beauty of putting money to capital is to improve quality of life, index and business capacity of citizens. With better highways, roads, water supply and marine environment there is more business, which means better taxation system and  property tax where  citizens start walking out of subsidized education, hospitals etc. as their financial capacity moves up’ said  municipal commissioner, Ajoy Mehta speaking at a discussion organised by ORF.

Talking about rationing of water in the city, Mehta said that by the end of next year, BMC will start water metering in residential individual connections to gauge and stop misuse of water. On management and disposal of garbage the civic chief said while it is important that citizens realise their responsibility towards garbage, modern garbage processing centres will be set up in all 24 wards where major portion of garbage will get processed. He also added that by the end of next year all sewers in the city will be mechanically cleaned thereby making Mumbai the first corporation to end human intervention. 

OSD, Development Plan and ORF Distinguished Fellow, Ramanath Jha said that out of the total revenue  that US collects, 15%  goes to cities, in Brazil it is 8%, Russia 6.5%, South  Africa 7%  and in India 0.75%. There is no other country other than India with most malnourished ULB’s. While the BMC has largest municipal budget no other municipal corporation in the country performs so many functions.

“With GST the situation of municipalities across the country had further worsened because the only substantive tax left to municipalities is property tax which is 22% of BMC revenues. Around the world no country can fetch more revenue than 25%-30% of its entire expenditure. This means that even after putting in all its revenue no city on its own can get more than 50% of its own expenditure that it require to function. These are unfunded mandate functions. So when we say cities are not performing, the crux of the matter is they don’t have money to perform” he said.

Jha also said that with huge migration happening into the cities, the city administration needs to be funded properly and the amount of revenue that has to be shared from centre to the state has not happened.

He further said that The State Finance Commission which was formulated due to 74th Constitutional amendments for carrying out the job has not had any impact nor improved situation. ‘The new Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013  has made matters worse as to acquire land  BMC needs to pay two times the  Ready  Reckoner Rate. Even after spending their entire revenue of 20 years the municipal corporation will not be able to acquire them. These are the kind of gaps that are developing… it’s not a very easy time for cities of this country, in future  it  going to be  tough…” said Jha.                 
 

Comments

 

Other News

In Delhi, 672 candidates, chasing 1.47 crore votes

The national capital territory of Delhi (NCTD) is going to assembly elections on February 8, and the results will be out on February 11. Now that the candidates have filed their nominations, here is an overview of electors and contenders. The ruling Aam Aadmi Party (AAP) is the only party to

Coronavirus outbreak: India steps up vigil

As the coronavirus outbreak in China continues to claim lives, India has stepped up its precautionary measures. The cabinet secretary on Monday reviewed the situation along with the secretaries in the ministries of health, external affairs, civil aviation, labour, defence, I&B, member-s

Violence never resolves any issue: Modi

Urging all who have taken the path of violence for their political campaigns to shun it and return to the mainstream, prime minister Narendra Modi has said that weapons cannot achieve lasting peace. “On the solemn occasion of Republic day, I would appeal to anyone in any part of the co

India set to bolster ties with Brazil during Bolsonaro`s visit

As India gears up to celebrate its 71st Republic Day on January 26, it will host Brazilian president Jair Bolsonaro as the chief guest of the event that marks the day when the country formally adopted the Constitution as the guiding document. This will be Bolsonaro’s maiden visit, which he would like

India gears up to meet Coronavirus challenge

With the outbreak of Coronavirus reported from China, India has started taking precautionary measures, and begun screening passengers of selected flights. “As of 21st January, a total of 43 flights and 9156 passengers have been screened for novel Coronavirus illness. Till now, no case

Reit: Real estate for retail

Every middle-class Indian dreams of a home coupled withlanded property to live off the rent. However, large initial investment, particularly inmetros, and low yields ensure that real estate is out of the reach of the common man. A return of 7-8 percent from commercial properties is considered highly commen



Archives

Current Issue

Video

CM Nitish’s convoy attacked in Buxar

Opinion

Facebook    Twitter    Google Plus    Linkedin    Subscribe Newsletter

Twitter