The Pune Municipal Corporation (PMC) only managed to implement 75 per cent of its Rs 5,870 crore budget for 2018-19 by the end of the financial year due to revenue shortfall of Rs 1,479 crore, the civic administration has revealed.
In a proposal tabled in the civic general body recently, the civic administration revealed the data for 2018-19 budget while seeking approval on its implementation. The civic administration is likely to table its draft budget for 2020-21 in the coming days.
According to information provided by the civic administration, the PMC had prepared a budget of Rs 5,870 crore for 2018-19 but it could implement only Rs 4,391 crore till March 2019. This led the civic body to cut funds meant for capital expenditure, improvement of public transport and work related to water supply and drainage system.
The civic administration said Rs 393 crore from capital expenditure funds were left after the completion of various projects, while Rs 101 crore remained unspent from the funds allocated for improvement of public transport system and Rs 424 crore were left from the work related to water supply and drainage system.
For 2019-20, the PMC budget was Rs 6,765 crore but implementation was limited due to revenue collection of Rs 4,400 crore, leading to increase in deficit. “It is a tough task to limit the budget as expenditure is increasing but revenue collection is not. There is no increase in taxes and other charges levied by the civic body, which is further making it difficult to implement,” said a civic officer.
“In the last few years, the deficit in civic budget is increasing and if the situation is not changed, then development work will be affected. But the civic administration is trying to control the expenditure by not recruiting staff, despite the need,” the officer added.
PMC standing committee chairperson Hemant Rasane has constituted a committee to focus only on revenue collection. He estimates that the civic body has a potential of collecting Rs 10,000 crore revenue if it is able to check tax thefts and leakages in the revenue collection system, sources said.
The PMC has been able to achieve a revenue collection of Rs 2,900 crore till the end of November. The average per month is considered then the collection will go up to Rs 4,400 crore by the end of the financial year.
Rasane has indicated a cut in proposed expenditure for the current financial year and many projects will have to be shelved considering the shortage of funds, sources said. Mayor Murlidhar Mohol has directed that no funds be diverted despite demands from corporators.
The major direct revenue source of PMC is property tax followed by development charges and dependency is compensation of Goods and Service Tax.