PMC administration presents Rs 2,910.12 crore draft budget before standing committee

PUNE: The Pune Municipal Corporation (PMC) administration on Friday submitted to the standing committee its draft budget for the year 2010-2011, totalling Rs 2,910.12 crore, which includes proposals to hike, water, property and octroi tax by a whopping Rs 377.87 crore, putting the committee in a fix.

A major portion of the budget will come from the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) Rs 429 crore, while the PMC has kept a provision to procure Rs 300 crore from banks and an additional Rs 377.87 crore by way of hike in taxes.

The corporation had avoided any tax hike in the previous budgets with an eye on the state and Lok Sabha elections which were round the corner then, but appears to have pushed quite a burden on the current budget in the process.

Municipal commissioner Mahesh Zagade, who presented the budget to the standing committee at a special meeting held at the general body hall on Friday afternoon, in a veiled warning said in case the tax hikes were not accepted in toto, there could be serious trouble ahead for the PMC.

Hike in octroi

The administration has tagged the annual revenue from octroi at Rs 886 crore, which is Rs 28 crore less than what the general body had set last year ( Rs 914 crore). However, despite lowering of octroi taxes last year, the target proved to be an ambitious one, with the administration estimating that the actual collection for the year may be no more than Rs 685 crore. This year the administration has proposed a target of Rs 886 crore, which includes a Rs 100 hike in tax against various items. Without the hike, the collections may not go beyond Rs 700 crore, the administration had said.

Property tax

The administration has proposed a Rs 162 crore tax hike to take the annual tax collections to Rs 606 crore.  Last year, the target was set at Rs 502.73 crore, however, the administration expects the collections for the current financial  year to be just Rs 380 crore. One again the PMC has laid the blame for low collections on the general body, saying it had rejected a tax hike for Rs 102. 73 crore.

Water tax

The administration has proposed a hike of Rs 80.14 crore in water tax collection. Last year, the corporation spent Rs 228.27 crore on the water supply system, but managed to collect only Rs 142.44 crore, sustaining a loss of Rs 85.83 crore, which it wants to make up this year.

HIGHLIGHTS OF DRAFT BUDGET

- With the 2011 deadline of funds flow from JNNURM coming close, PMC is getting ready to evolve other ways to carry forward challenges of developing infrastructure. On Friday, the municipal commissioner said Private Public Partnership (PPP), Build Operate Transfer (BOT), development TDR, deferred payment would become the norm at PMC. The PMC receives on an average Rs 500 crore through JNNURM each year.

- The commissioner increased the health department annual  budget from 1.78 pc to 3.39 pc of the budget, taking it to Rs 98.77 crore.

- Road and traffic will continue to attract the biggest chunk of Rs 677.09 crore, with Rs 27 crore allocated for acquiring land.

- The commissioner had set Rs 35.73 crore for projects through people's participatory budget. Last year 851 works suggested by citizens were incorporated in the budget, this year it is 948, reflecting the growing interest of citizens.

- To get the best teachers for PMC schools, the commissioner has provided funds for virtual classrooms.

- For the girl child, the PMC has introduced a Kanyaratna scheme, that provides for Rs 2,000 for every girl below poverty line, who has passed Std V, Rs 4,000 when she passes Std VIII, and Rs 7,500 when she passes Std X.  All girls under BPL studying Std XI or XII, would get a stipend of Rs 200 per month.