BMC’s Covid-19 bill to cross Rs 1,600 crore this fiscal year

The BMC jumbo Covid centre at Malad West. The money was also spent on setting up oxygen plants. File pic

The civic corporation has spent Rs 1,304 in the last 9 months to tackle the Covid outbreak in the city, show documents that would be put up before the standing committee on Wednesday. The BMC administration has also sought an additional Rs 300 crore till March. The hefty spending has been done without any provision in the budget.

In the financial year 2020-21, the BMC spent Rs 1,809 on Covid management. While it was not possible to make any budgetary provision as the pandemic struck in March 2020, in the next financial year, the administration diverted funds from other departments and dipped into contingency funds for all Covid-related work, including setting up of jumbo centres and oxygen plants.

A BMC worker takes a sample at Dadar on Tuesday. Pic/Suresh Karkera

As per the numbers shared with the standing committee, the administration froze 20 per cent of budgetary provision from every department and raised Rs 654 crore. But the method wasn't smooth as some departments needed money, forcing the civic body to transfer back Rs 50 crore to them. Even Rs 240 crore from special funds and Rs 536.6 crore was drawn from the contingency fund. Of a total of Rs 1,380 crore raised through transfers, the BMC spent Rs 1,304 crore till December end.

With the administration's fresh request for more Rs 300 crore, the overall spend on the pandemic so far will be Rs 3,422 crore, which is nearly half of the total expenses on civic projects in 2019-20. The Opposition has raised questions over the way the BMC arranged the funds to fight Covid.

"The BMC administration should have made a provision for Covid expenses in the budget. But they didn't want transparency. A massive correction in the amount of work has been taken place. An enormous amount has been spent without tenders and the ruling Shiv Sena is answerable for this," said Ravi Raja, leader of the opposition.

Municipal Commissioner I S Chahal said, "It was difficult to anticipate [the expenses] as the budget was presented by me on February 5 and the second and third wave came after it."