Facing revenue losses due to the lockdown, the Brihanmumbai Municipal Corporation (BMC), while tightening its purse strings, has directed all its departments to invite tenders for civic works only when there is a provision in the budget for that particular project.
According to a circular issued by BMC’s chief accountant (CA) department on November 10, head of departments, chief engineers and other department in-charges have been asked to plan for any development projects only when are funds allocated in the budget for the same. All departments have also been told to submit a liability list in a bid to manage the expenditure better.
“It has been observed that many departments initiate development projects by inviting tenders without realising that there is no provision for such works. Such unplanned works create unnecessary liability on the BMC,” said an official.
“In most cases, due to political interference or requests from public representatives, funds are not allocated for
new projects. This also causes problems for planned projects where work has begun. In case of an unplanned project, funds for it will be arranged by taking away allocation from the budgeted works,” the official added.
Officials from the CA department also said that the BMC is executing many big ticket projects and while making estimates for these, it does not calculate other factors like contingency fund as well as consultancy and utility charges. “When work for a project is awarded to the contractors, there is a big difference in estimated and actual cost,” said an official.
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