The Hindu : Karnataka / Bangalore News : Fund-starved BBMP seeks Chief Minister’s help

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Monday, Jun 30, 2008
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Karnataka

Karnataka - Bangalore

Fund-starved BBMP seeks Chief Minister’s help

Krishnaprasad

It has sought budgetary allocation of over Rs. 3,000 crore

Funds shortage following stoppage of collection of property tax
There is pressure on the civic body to take up infrastructure projects

Bangalore: The fund-starved Bruhat Bangalore Mahanagara Palike (BBMP) has sought over Rs. 3,000 crore from the Government in the forthcoming budget, to be presented by Chief Minister B.S. Yeddyurappa, for 2008-09.

According to officials, the BBMP is facing a severe shortage of funds as a result of stoppage of collection of property tax and pressure on the civic body to take up major infrastructure projects without proper financial assistance from the Government.

While collection of property tax is inelastic, the revenue from advertisement is fully optimised and any additional tax will invite wrath from the public, said an officer while pointing out that even the borrowing capacity of the BBMP has become limited in the absence of government guarantee.

With this background, the BBMP has now sought Rs. 1,100 crore as Special Development Grant from the State to improve basic amenities in new areas and an additional grant of Rs. 100 crore to pay for other government agencies for shifting utilities such as phone and electric cables and water lines.

The BBMP has put forward a demand for over Rs. 2,000 crore to decongest major corridors — Mysore Road elevated corridor of 10 km from Sirsi Circle to Kengeri, elevated corridor from Rajajinagar Entrance to Yeshwanthpur and other elevated corridors besides seeking special fund for solid waste management and other projects.

Sources also told The Hindu that it has been pointed out to the Chief Minister that unlike other urban local bodies that receive 100 per cent salary and pension grant as per State Finance Commission’s suggestion on devolution of funds, the BBMP gets a meagre Rs. 84 crore as against its need of Rs. 290 crore to pay salary and pension.

The Government deducts Rs. 64 crore at source towards electricity bill from the Rs. 84 crore, pointed out an official.

“The Government wants the BBMP to do miraculous progress in improving city’s infrastructure. But where is the money? The BBMP, as per devolution of fund suggested by the State Finance Commission, should get Rs. 1,256 crore annual grant from the Government but the Government has fixed an annual grant of Rs. 478 crore for the BBMP. How the BBMP can work under these circumstances?” asked the official.

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