Municipal Commissioner orders 25% cut in NMC budget for 2019-20

Staff Reporter :

Abhijit Bangar, Municipal Commissioner, has directed 25 per cent cut in the budget of Nagpur Municipal Corporation (NMC) for the year 2019-20. A circular has been issued to heads of all the departments in this regard. Pradeep Pohane, Chairman of Standing Committee, had proposed a budget of Rs 3,197.60 crore for the year 2019-20. The budget cut by Bangar indicates fiscal prudence as the civic administration noticed ‘deficit’ in the revenue earned by NMC till November 2019 in the current financial year.

As against the revenue target of Rs 3,197.60 crore, NMC could post revenue of Rs 1,882 crore only between April 1 and November 30, 2019. The revenue earned during this period is reduced further if one considers that it also includes around Rs 400 crore balance from the year 2018-19. Further, grants received from the State constitute a major portion of the revenue earned till November 2019. Given the past experience, a big part of the recovery of property tax and other taxes is posted in the last two months of a financial year.

Considering all these factors, the civic administration’s review indicated that it would be a sound decision to slash the budget by 25 per cent. The cut will not be applicable to public utility works in wards, provision made for backward areas, provision for Divyangs under Antyoday Yojana, road improvement programme under Pt Deen Dayal Upadhyay Scheme, various development works at the initiative of Mayor, and developmental works suggested by Deputy Mayor, Chairman of Standing Committee, and Rs 1 crore reserved provision. In the circular issued by A K Madavi, NMC’s Chief Accounts and Finance Officer, as per the directions of the Municipal Commissioner, it is mentioned clearly that no file should be submitted for administrative approval without ascertaining that the estimate mentioned in work order is within the limit of 75 per cent of the budget head for the purpose.

Also, the heads of departments, and Assistant Commissioners/Ward Officers have been asked to ensure that no additional liability above the appproved provision is created. The circular was issued on the last day of the year 2019. According to officials in the know of things, the budget cut is likely to affect works of above Rs 700 crore. A statement regarding the ‘revision’ will be made when the Municipal Commissioner presents the revised budget next month. Interestingly, Bangar had presented his budget of Rs 2,452.36 crore for 2019-20. However, Pohane later increased it by Rs 745.24 crore.