What BMC did not tell you in the budget

One of the reasons for rising expenditure is the increasing cost of operation and maintenance, for instance, appointment of staff on contract, like mask marshals. File pic/Bipin Kokate

This being an election year, the BMC budget does not mention new taxes, but citizens will eventually have to shell out more from their pockets, as the expenses of the civic body, not only on big projects but also on salaries, have steadily been increasing over the years. Without increase in income, civic services will be hampered. The BMC has been shelling out more than 45 per cent of its income on salaries compared to seven years ago. In the 2021-22 budget, revenue expenditure was estimated at R20,276 crore, and revised to Rs Continued from page 1

The revenue expenditure increased from Rs 16,055 crore to Rs 22,745 crore in the past six years while the income was almost steady with exception of 2021-2022, when the BMC received a boost through the Development Plan receipts that earned Rs 13,550 crore (almost 40 per cent of the total revenue). The revenue from 2016 to 2020 was around Rs 23,000 crore while the revenue expenditure increased every year. The capital cost on project works also increased from Rs 3,850 crore in 2016-17 to Rs 16,866 crore in the same period.

BMC contract workers at the COVID Centre at NESCO. File pic

Now the BMC has estimated a Rs 30,000 crore revenue in the next financial year by introducing a hike in property tax and levying user fees under solid waste management after the BMC election. CIvic chief I S Chahal said in his budget speech that though various measures are being implemented continuously to reduce revenue expenditure, it will increase.

Rising costs

One of the important reasons is the rising cost of operation and maintenance due to the appointment of employees on contract basis on vacant posts, additional expenditure incurred on various COVID-19 care centres and isolation centres, etc. The cost of operation and maintenance increased by 61 per cent in five years from Rs 2,562 crore to Rs 4,125 crore. The cost of salaries of employees also increased after the implementation of the 7th pay grade in 2020. The BMC had also decided to pay Rs 300 daily allowance to employees for the level of personnel up to assistant commissioner during the pandemic which cost around Rs 400 crore annually.

"The surplus of revenue has been continuously decreasing and so the contribution to the capital budget (for project work) has also reduced. Considering the increasing liabilities of ongoing projects and special projects, obligatory duties, huge amounts will be required in the future. The completion of the significant projects, their upkeep, and upgradation will be hampered if sufficient funds are not made available in ensuing years," said Chahal, while presenting the budget estimate for 2022-23.

"The budget is exaggerated and has no mention of measures to actually increase the income. The budget is highly dependent on the reserve funds and will lead the city to bankruptcy," said Prabhakar Shinde, group leader of BJP.22,745 crore, 12 per cent more than the estimated.