AG pulls up govt for turning blind eye to BMC’s fiscal indiscipline

As per rules,the education and employment guarantee cess is collected by local bodies and credited to the government’s account on a weekly basis. The repair cess has to be remitted within 15 days and building tax within 30 days. There is no provision to levy interest or penalty in case of delay.

The PAG has pointed out that in case of delay in remittance “the government can fix a period for payment of such sum. The Act also empowers the government to direct the bank/treasury in which the earnings of the municipal corporation are deposited,to pay such sum from such bank account to the state government… The government did not initiate any action either to fix a period for the payment of the dues or direct the banks to pay the amount due from the accounts of the BMC.”

The PAG has rejected BMC’s contention that the amount would be remitted after receipt of audited collection reports from the wards concerned. “The reply is not tenable as the amount collected on behalf of the government is required to be remitted within the time prescribed in the Act,” the PAG told the state.

The state government has also been asked to evolve a mechanism to monitor the timely credit of revenue by agencies that collect duties and taxes on its behalf.

A senior bureaucrat in Mantralaya said that the matter would be taken up with the BMC soon.