Setting an example through municipal bonds
The municipal bond, the latest feature in the finances of the PMC, is likely to be followed by other municipal corporations in the country. It is also being seen as a step towards making the municipal corporation self-reliant. The PMC raised Rs 200 crore, and aims to raise Rs 2,264 crore in five years through municipal bonds to ensure 24X 7 and equitable water supply across the city. On the expenditure front, the capital expenses of the PMC has increased by over eight times, from Rs 353 crore in 2003-04 to Rs 2,926 crore in 2017-18. The priority has been on the development of roads and providing civic amenities to meet the demands of local residents. The PMC has developed flyovers, widened city roads, constructed new ones, set up gardens, hospitals, schools and sewage treatment plant.
Big strides through JNNURM, Smart City Mission
The PMC was among the leading municipal corporations to benefit from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) to develop civic infrastructure. The city stood second in the competition to develop itself as a Smarty City.
A large number of projects have been lined up to upgrade civic facilities under the Smart City Mission. Among the major projects are the Pune Metro project, river beautification project, along with the 24X7 water supply.
Octroi, LBT led from the front
Until now, the maximum contribution in the PMC’s kitty has been from the local body tax (LBT). The LBT was introduced after abolishing Octroi tax, on packed goods collected at the entry points of the city. However, the LBT also has come to an end, after the introduction of GST across the country, with the assurance that the revenue collected will be passed on to the civic body every month.
The revenue collected from the LBT was Rs 265 crore in 2003-04, and it had reached Rs 1,730 crore in 2017-18.The second largest source of civic revenue has been property tax. The PMC collected Rs 171.63 crore from property taxes in 2003-04, which has now increased to Rs 1,503 crore for the current fiscal year. The general tax has increased by 12 times, while the collection from water tax has increased by 5 times and cleanliness tax by around 11 times.