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BMC innovative schemes fail to improve revenue generation

Staff Reporter

Tax collection is below the target in the first 8 months

BHUBANESWAR: Despite several ‘hyped’ steps to enhance efficiency of tax collection mechanism, the Bhubaneswar Municipal Corporation (BMC) has again failed to improve tax revenue generation to a large extent this year.

According to budget proposals for 2008-09 fiscal that got nod of the BMC on Wednesday, during the first eight months of the current fiscal the total tax collections on different heads was Rs. 6.54 crores against the target of Rs. 20.06 crores.

In previous year, the tax collection realised during same eight months was Rs. 6.27 crores.

The holding tax collected during the first eight months was Rs. 2.93 crores compared to last year’s figure of Rs. 2.91 crores.

The advertisement taxes collection was estimated at Rs. 1.33 crores as against Rs. 1.11 crores in the corresponding period last fiscal.

Collection of lighting tax was almost same at Rs. 1.49 crores.

The performance is considered as dull against the backdrop that the BMC introduced several innovative schemes to collect taxes from habitual defaulters.

Starting from publishing their names in newspapers to display of names in hoarding to warning of legal action seemed to have not worked.

Optimistic

Sameer Mohanty, Chairman of Taxation, Finance and Accounts, however, defended saying the tax collection figures would go up astronomically during the one-month rebate and relaxation period, which was generally offered by BMC at the end of a fiscal.

Though the corporation has been able to spend budgetary allocation satisfactorily on administrative heads, when it comes to public services the performance appears to be below par.

The commission had publicly declared to go for mass sterilization of stray dogs to end their menace.

Neither BMC managed to spend a penny during 2006-07, nor could it use the fund during first eight months of the current fiscal against allocation of Rs. 10 lakhs.

Similarly, against Rs. 10 lakhs of budgetary provision for improvement and maintenance of public toilets, the corporation failed to touch the fund.

Mr. Mohanty explained, “the fund could not be spent as we did not have enough manpower operate the toilets. We will renovate all the toilets and handover to private parties.”

Another ambitious programme, construction of Corporation Hospital at Brahmeswarpatna, was also not materialised. Total fund of Rs. 1 crores is lying unspent.

The corporation also failed to spend Rs. 10 lakhs for senior citizens during first eight months as well as last fiscal.

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