1999: PMC not8217; on progress path

PUNE, Jan 4: Faced with record low recovery of revenue, the Pune Municipal Corporation is unlikely to initiate any new major development ...

PUNE, Jan 4: Faced with record low recovery of revenue, the Pune Municipal Corporation is unlikely to initiate any new major development work in the next budget as it expects a deficit of Rs 38 crore in the current financial year.

Well-placed civic sources admitted to The Indian Express that with the exception of octroi department, all the other divisions had failed to achieve their revenue target in the present financial year. Anticipating the low recovery of revenue, the administration had already put up a docket before the standing committee, suggesting a deduction of 25 per cent in various development works. The standing committee, however, is yet to take a final decision on the issue.

The slump in the construction activity has made it difficult for the PMC to achieve its target of Rs 36 crore. Despite the inclusion of 38 fringe villages in the city, the number of building proposals has hit an all-time low, resulting in a 35 per cent dip in revenue collection.

The officials revealed that the PMC had collected only Rs 14 crore till October last and was anticipating an income of Rs 24 crore only as against the target of Rs 36 crore. The sources said the new proposals for building permission had been dropped by 20 per cent in the current financial year.

Similarly, the administration was expecting a deficit of Rs 12 crore in the recovery of water tax. The 1998-1999 budget has set a target of Rs 36 crore for water tax. The sources, however, said they would be able to recover only Rs 24 tax through water tax. The water department had gained a revenue of Rs 10.01 crore in the first six months of the present financial year.

The officials attribute low recovery of water cess to faulty water metres and inefficient machinery to collect the taxes. The sources pointed out that as many as 75,000 water meters in the city were either out of order or damaged. They also point out that the PMC is yet take any step to recover the massive dues of Rs 50 crore from various commercial establishments. Taking serious note of the low recovery of water cess, the civic authorities are planning to take stringent steps to increase the revenue through water cess.

The 1998-1999 budget had expected a financial aid of Rs 10 crore from the State Government through District Planning Development Council DPDC. However, the State Government, which itself is facing financial crisis, has not released any money for the development works, even though they were sanctioned at the DPDC meeting. All the attempts by the civic authorities and the MLAs of the ruling party to get the expected financial aid from the State Government have proved futile.

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The officials said the PMC would earn only Rs two crore as against the target of Rs six crore by way of service tax in the slums. They said the Rs 38 crore deficit was bound to affect the development works. They maintain that the administration would give priority to complete the works, which were already initiated. They said several development works which were already in progress, have been stalled for want of funds.

Jha8217;s plan dropped: Former municipal commissioner Ramanath Jha8217;s much publicised and ambitious plan to raise funds through public bonds is all set to be dropped from the next financial year. Jha, while submitting the last budget, had announced his intention to raise Rs 20 crore through public bonds in the present financial year. The PMC, however, did not follow up the issue even after getting all the necessary permission from the government. The civic authorities, this time, would prefer to raise funds by traditional ways by approaching financial institutions instead of public bonds.