Mumbai: BMC loses over Rs 3,000 crore in FDs

Representation pic

The fixed deposits of the BMC fell to Rs 89,353 crore at the end of September from Rs 92,636 crore at the end of January. Earlier, the FD amount had increased by 18 per cent during the last year, after the corporation had given a 50 per cent concession on development premium.

The FDs of the richest municipal corporation has always been in the limelight. In the last financial year, the fixed deposits of the BMC touched the Rs 90,000 crore mark after remaining stagnant for years. But as per the latest figures, it reduced in the last eight months by more than Rs 3,000 crore. The fund was majorly used for the coastal road, construction of various bridges, stormwater projects etc.

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The BMC's 2022-23 budget increased by 17 per cent from the previous year to Rs 45,949 crore with the help of Rs 30,743 crore revenue from various sources and internal loans of Rs 14,704 crore. The major sources are compensation in lieu of octroi at Rs 952 crore per month and income from property tax at Rs 7,000 crore. But the BMC was able to collect only Rs 904 crore property tax till the end of October. The internal loans come from the FDs. This means the BMC uses the amount from FDs over and above the income from the other revenue sources.