HYDERABAD: Though the Municipal Corporation of Hyderabad has heaved a big sigh of relief with the Government releasing Rs.66 crores towards property tax and reimbursement of profession tax for the year, it cannot afford to ignore the revenue collections.

More so, because it is apparent that there is no chance of getting last year's dues of Rs.50 crores from the Government. The property tax demand on Central Government buildings and organisations has remained on paper over the last few years, as the MCH has been unable to make them pay.

Property tax receipts till the Government released its dues was only Rs.120 crores this year with just a few days for the financial year to end. A furious MCH Commissioner Sanjay Jaju reportedly pulled up his staff for being unable to mop up revenues on time and all his field staff have now fanned out for collections.

Collections plateau

However, property tax collections have reached a plateau in the last three years despite stiff targets. While it grew dizzyingly from Rs.46.89 crores to Rs.129 crores between 1995-96 and 2001-2002, for the next three years it has been Rs.153.24 crores, Rs.160.85 crores and Rs.166.40 crores, respectively.

Considering the pattern, the target of Rs.210 crores for 2005-06 can only be termed ambitious. And the amount due from seven circles till date is close to Rs.120 crores.

"When compared to Rs.116 crores spent on works last year, this year we are likely to touch Rs.170 crores due to road-widening, storm-water drains, flyovers and parks. We have to raise revenues for more developmental activities," affirms a senior official.

MCH expenses up

MCH's expenses on its staff also went up by Rs.18 crores due to pay revisions and it is yet to get a reimbursement of Rs.15 crores from the R&B Department for widening of roads in Banjara Hills and Jubilee Hills.

Yet, Additional Commissioner (Finance) Ramesh Babu insists there is no cause for alarm. "There is no dearth of funds for salary disbursement as we maintain a separate account. There was a slight delay in payment this month due to some procedures concerning income tax assessment and payment officers."

In recent years, MCH has not had major financial hassles. However, things could change for the worse if it does not watch its back.

Pending collections

Tax collections pending from seven MCH circles: One - Rs.14.5 crores; Two - Rs.11.5 crores; Three - Rs.21 crores; Four - Rs.9 crores; Five - Rs.32.5 crores; Six - Rs.19.5 crores; Seven - Rs.13.5 crores

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