BBMP Allocates Funds for BangaloreHoping to overcome decline in its revenue generation impacted by recession, the Bruhat Bangalore Mahanagara Palike (BBMP) on Wednesday increased its outlay by Rs 1,327.64 crore to Rs. 4,246.35 crore, the highest so far, in the Budget 2009-10 while giving priority for development of road-related infrastructure.

The Budget states that earnings in 2008-09 was impacted due to economic slowdown. While non-tax revenues decreased by Rs. 233 crore as against the target of Rs. 542.04 crore, mainly because of the general recession in the economy, only Rs. 44.5 crore was released from the advertisement tax as against the target of Rs. 91 crore.

BBMP Commissioner S. Subramanya has earmarked Rs. 1,525 crore (35 per cent of the outlay) for development of various road related infrastructure.

An ambitious project was to make 12 road corridors, connecting the city with the outskirts, signal-free. For the first time, the BBMP has come out with Mid Term Fiscal Plan (MTFP) although the Government was yet to come out with rules, tentatively laying down fiscal targets (both revenue and expenditure) for the next four years based on “Governance in Bengaluru Metropolitan Region” reported submitted by K. Kasturirangan.

Each ward would get Rs. 6 crore to be spent on various regular works such as removal of debris, repair of pavements, streetlights, cleaning of drains, maintenance of burial ground and resurfacing internal lanes.

The Budget made highest ever allocation, Rs. 533 crore, for the social welfare sector as against Rs. 318 crore last year. Of this non-lapsable fund, Rs. 483 crore had been earmarked for Scheduled Castes and Scheduled Tribes.

Solid Waste Management has been given Rs. 249.58 crore, Rs. 148 crore has been earmarked for “Green Bangalore” initiative, like improvement of lakes and parks, increasing greenery. The BBMP expects to generate Rs. 1,100 crore from property tax by March 31, 2010.

Similarly, it projects revenue of Rs. 64 crore from advertisement tax and Rs. 309.74 crore from non-tax revenue, which contribute to the expected revenue receipts of Rs. 3,959 crore in 2009-10 apart from Rs. 287.05 crore already available with the BBMP.

About Rs. 1,600 crore would be available in the form of grants and loans from State and Central governments, and other funding agencies. Finally, the BBMP will be left with Rs. 7 crore in its pocket.

Source:The Hindu, 26th Feb, 2009