Budget okayed, hike in water tax stays

Municipal Commissioner Girish Gokhale had tabled budget estimates showing a deficit of Rs 199.03 crore before the committee on April 21. Gokhale had proposed all-round increase in the general tax, fire tax, street tax and education cess to yield an additional income of Rs 199.25 crore for the BMC to off-set this deficit.

The proposed four-fold hike in the water charges from 60 paise to Rs 2.75 per 1,000 litres of water, expected to yield an additional revenue Rs 128 crore, was divided into four categories — slums, chawls, housing societies and flats, and high rise buildings — by the standing committee.

Accordingly, the residents of the slums and gaothan areas will have to pay Re 1 and those residing in chawls will have to pay Rs 1.25. The water charges for the residents of flats and housing societies will be Rs 2 and the residents of skyscrapers will pay the proposed charge of Rs 2.75. The charge of Rs 2.75 per 1,000 litres of water will also be levied on all non-residential, commercial and industrial consumers.

The proposed hike in the water charges sought to recover the complete operational expenditure incurred by the Brihanmumbai Municipal Corporation in supplying water from the reservoirs.

However, the standing committee rejected the proposed hike in the general tax by 20 per cent and in the street tax by five per cent which was expected to yield an additional revenue of Rs 153.25 crore. While the administration had proposed a seven per cent increase in the education cess, seeking to increase the existing cess from five per cent to 12 per cent, the standing standing committee slashed the same by half.

Accordingly, an additional revenue of Rs 43 crore expected to be earned from education cess was curtailed to Rs 21.50 crore.