THE MUNICIPAL Corporation used up Rs 197 crore within a span of 365 days from its fixed deposits to make payments for its projects as well as pay salaries to its employees. The fixed deposits with the MC as on March 31, 2016, were Rs 272.88 crore and the balance now shows Rs 75.13 crore. Sources said nearly Rs 120 crore of the Rs 197 crore were spent on development projects. As the civic body is already poor in revenue generation, it relied mainly on the fixed deposits.
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“We kept making estimates of various projects like upgradation of community centres, roads and above that we had our ongoing projects as well. The funds which we get from the administration are just 30 per cent of our budget. So, we had to use up the FDs,” said a senior officer. Former Congress councillor Subhash Chawla said, “Soon, there would be a situation when the MC will plunge into a financial crisis. They won’t be able to pay salaries even. The FD is just Rs 75 crores and they already know how much grant-in-aid they get from the administration.”
At the House meeting, the MC Commissioner had clearly specified that there was an urgent need to generate revenue as the financial condition of the civic body was really bad. He said the revenue needs to be generated from various sources if development work has to be carried out. Mayor Arun Sood had also pointed out that revenue collection from water tariff which should have been Rs 120 crores was only 50 per cent of it. According to details, in 2015-16, the MC got a grant-in-aid of Rs 76 crore under the plan head while the expenditure was Rs 252 crores. Hike in parking rates, water tariff, booking charges of the community centres are now being proposed as the MC will now have to depend on its revenue if it doesn’t want to face any financial crisis.