Amid COVID-19 pandemic, NMC’s budget today
   Date :20-Oct-2020

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Staff Reporter :
 
Challenges galore for Standing Committee as it balances expectations with reality in financial year of 2020-21
 
 
Coronavrius pandemic imprint is likely to be seen on much delayed civic budget that is slated for presentation on October 20 during the special general body meeting to be held digitally. Vijay Zalke, Chairperson, Standing Committee, is going to present the budget of Nagpur Municipal Corporation (NMC) for financial year 2020-21 so as to streamline the finances that got strained due to low income and high outlay for meeting expectations of citizens. Zalke would present the budget to Mayor Sandip Joshi at NMC Headquarters in Civil Lines at 11 am and thereafter discussion would be held.
 
The challenge to civic finances has increased manifold and drastically pushed forward need to enhance outlay to Health services as the same was focus during the pandemic. However the fact remains public projects have remained on back burner due to inconsistency in releasing funds leaving citizens frustrated and now hope that post passing of civic budget atleast rulers get their act together and give fillip to pending works. For NMC, the release of Rs 603 crore as compensation for General and Service Tax (GST) provided a much needed cushion since its own mechanism to generate money has come a cropper. The largesee on part of Maha Vikas Aghadi (MVA) Government to civic body saw further grant of Rs 299 crores for various development projects.
 
Barring this Rs. 902 crores from State exchequer, for NMC there is no other major revenue stream to shore-up its balance sheet given that many new works that are in pipeline needs funds support. Similarly the crumbling road network too needs a big booster from budget. Former Municipal Commissioner Tukaram Mundhe, who had frozen the development works on lines of directives from State Government owing to fall in GST collections in aftermath of pandemic, had stated that total income of NMC may not cross Rs 2,500 crore. He had presented revised budget wherein Mundhe had taken into consideration effect of pandemic and that led to run-ins with the ruling establishment in NMC. At present, NMC’s internal accruing is just Rs. 175 crore in first six months which is not a very good outlook. Also the ruling Bharatiya Janata Party (BJP) has pressed for rebate in property and water tax so soften the impact of COVID-19 pandemic that left a deep hole in pockets of common man.
 
The BJP has been insisting on granting concession for the first six months through 5 per cent rebate in water cess and property tax but given the already strained resources and no scope of hiking taxes, Standing Committee has its hands full with balancing the need to shore up finances and soften the blow of pandemic. Since last two financial years, NMC has been presenting a budget estimating revenue to be over Rs 3,000 crore but never it could meet the target, largely due to deep hole in Property Tax collection, it is now single biggest source of accruing for cash strapped NMC. Pradeep Pohane, ex-Chairman, Standing Committee, had presented NMC budget of Rs 3,197.34 crore for 2019-20, but reduced recovery and drop in inflow of aid from the State Government put paid to his hopes.