BMC to draw money from its reserves to fund projects
Geetanjali Minhas | March 9, 2018 | 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.
Even as Mumbai fights challenges posed by COVID-19 on multiple fronts and as the coronavirus cases continue to rise daily, the city now faces a double whammy with the cyclone ‘Nisarga’ slated to make the landfall in Maharashtra Wednesday. A state-wide alert has been issued for Mumba
Probing data concerning increased job creation and the decline in unemployment has been holding the attention of economists and been subject of discussions in several think tanks in the preceding months. The NITI Aayog reports that 3.53 million new jobs were created between September 2017 and February 2018
With Lockdown 4 ending Sunday, the home ministry has issued new guidelines to fight COVID-19 and for phased re-opening of areas outside the Containment Zones. The guidelines, issued based on extensive consultations held with states and UTs, will be effective from June 1 till June 30. The first phase of reo
When the whole world is fighting COVID-19, food and nutrition security has become a major issue. The pandemic has aggravated the existing food crisis in India, especially in rural and tribal regions. There has been less availability of fresh foods in most parts of the country, and the tribal community has
India is determined to “set an example” for the rest of the word in the post-pandemic economic revival, prime minister Narendra Modi has said, underling the need to become self-reliant. “There is also a widespread debate on how the economies of various countries, including
Close to 48 lakh migrant labourers have been able to reach home from the cities they were working in, as the Indian Railways have run a total of 3,543 “Sharmik Special” trains from May 1. Following the home ministry order regarding the movement by special trains of migrant worker