A “DECREASE in revenue collection” has forced the Pune Municipal Corporation (PMC) to introduce a cut of about 45 per cent in estimated Rs 5,998-crore civic budget for 2017-18, which would directly impact the development works planned for the areas within its jurisdiction.
Mayor Mukta Tilak had recently reviewed the PMC’s performance in the first six months of the current fiscal, which indicated a possible deficit in the budget. “The PMC administration should not take up new civic projects due to a shortage of funds. Instead, it should focus on completion of the ongoing projects,” Tilak told the civic officials.
As per the review report, “In the first six months of the current fiscal, property tax collection was about Rs 650 crore, building construction department had collected Rs 200 crore, while local body tax collection was Rs 1,000 crore.
Financial assistance from the government has taken the overall revenue collection to Rs 2,200 crore in the first half of the financial year and an additional Rs 1,000 crore is expected to be available in the next six months, which would take the total revenue collection to Rs 3,200 crore, as against the estimated Rs 5,998 crore.”
“The PMC has estimated expenditure of Rs 1,700 crore to meet the administrative cost, including salaries of the civic staff, operation and maintenance of civic properties. Thus, at present, only Rs 500 crore are available for capital expenditure,” it added.