The Hindu : Nothing but a repetition of old projects

Online edition of India's National Newspaper
Monday, Feb 23, 2004

Tamil Nadu

Tamil Nadu - Tiruchi

Nothing but a repetition of old projects

By S. Ganesan

TIRUCHI, FEB.22. Even as the Tiruchi Corporation is pulling all the stops to emerge out of the red and improve revenue generation, its budget for the year 2004-`05 has come as a disappointment to the residents as it has turned out to be a monotonous document, devoid of new initiatives.

A section of councillors and service organisations termed the budget as an `old wine in new bottle.' For, most of the schemes, which find a mention in the document, have been announced years back. Conceding that the first two years after the present council came into being were rather harsh in view of severe financial crunch and huge debt burden, the residents were hoping for some fresh development initiatives this time around as the corporation was said to be turning the corner now.

But the budget document is nothing but a repetition of old projects except for the move to go in for resource mapping using Geographical Information System and a few health awareness initiatives.

Some of the `mega projects' that are to be taken during the financial year include the underground drainage system for Srirangam and Golden Rock (already underway in the city), the project to generate energy from waste, conversion of earthen roads into bitumen roads, construction of the Yanaikulam commercial complex, working women's hostel, slaughter house, theme park, new markets and laying a new link road between Shastri Road and Bharathidasan Salai.

Privatisation of solid waste management system and distribution of water supply continue to remain in the conceptual stage.

The long awaited `thrust' on improving basic amenities in the so-called newly added colonies still proves to be elusive. Most of these areas were added to the urban civic body in 1994 when it was upgraded as a corporation. While residents of these newly added areas were hoping for an improvement in the standard of civic amenities with the upgradation of the local body, most of the erstwhile town panchayats and panchayats still remain largely underdeveloped.

On the fiscal side, the corporation has managed to bring down the deficit to manageable proportions of about Rs.11.68 crores (as per the revised estimates for 2003-04) over the past couple of years, mostly by improving tax collection. It does not seem to have achieved any significant savings through cost cutting, a much talked about issue. Salaries and pension payments account for nearly Rs.20 crores out of the total budget outlay of Rs.74.23 crores.

With the devolution funds from the Government registering a decline from Rs.18 crores in 2002-03 to Rs.12 crores in 2003-04 (the corporation is anticipating an allocation of Rs.13 crores during 2004-05), the civic body is faced with an urgent need to increase revenue generation. It has managed to save Rs.4 crores by shifting a loan of Rs.10 crore from the TN Urban Development Project to the Tamil Nadu Urban Financial and Infrastructure Development Corporation at less interest rate. Similarly, loans to the tune of Rs.31 crore from the State Government is proposed to be shifted to nationalised banks at lower interest rates, which is expected to result in a savings of Rs.7 crores.

But the corporation would be required to do much more to be able to take up major works with its own fund. Effective steps to widen the profession tax net, collection of levies from unauthorised constructions and settling of tax litigations could substantially improve its resources, say officials.

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