The Hindu : Karnataka / Bangalore News : A year of financial slowdown for BBMP

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Thursday, Jan 01, 2009
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Karnataka

Karnataka - Bangalore

A year of financial slowdown for BBMP

Krishnaprasad

Two of its major sources of revenue hit the ground

Lack of clarity on adopting proper procedures for assessment and collection of taxes
BBMP expected at least Rs. 100 crore through regularisation of unauthorised constructions

Bangalore: 2008 turned out to be a year of “financial slowdown” for the Bruhat Bangalore Mahanagara Palike (BBMP).

Two of its major sources of revenue, property tax and advertisement tax, hit the ground owing to lack of clarity in the State Government on adopting proper procedures for assessment and collection.

The BBMP could not collect Rs. 605 crore because of the controversy over adoption of a people-friendly system for collection of property tax.

Though the State Government withdrew the much-opposed Capital Value System (CVS) and introduced the earlier system with certain amendments, some changes made have not gone well with a section of the people. The BJP Government is in a dilemma over finalising the tax collection system as it has to face elections to the BBMP council in 2009.

On the other hand, collection of tax from advertisements reduced drastically with the Government’s intervention following allegation of irregularities in granting advertisement licenses and other issues. The revenue from this source will not be substantial till a comprehensive advertisement by-law is adopted. The BBMP hoped to generate Rs. 91 crore between April, 2008 and March 2009.

The BBMP expected at least Rs. 100 crore through fines or penalties by regularising unauthorised constructions and sites under Akrama-Sakrama scheme. This too did not materialise as the Government failed to come out with the improved version of the scheme.

Magic box

It was a year of magic boxes as the BBMP adopted this new concept of using pre-cast concrete elements to build underpasses. Magic boxes were used for building storm water drains too. Though work on underpasses using magic boxes moved steadily, that on major infrastructure projects such as elevated road corridors, skywalks with escalators, railway over and under bridges, announced in the BBMP budget is yet to commence. However, a plan to build and maintain bus shelters on build, operate and transfer (BOT) basis by granting advertisement rights to private firms is in the final stage of implementation. Similarly, a plan to maintain public toilets on BOT basis through granting advertisements to private firms is being implemented. The State Government has not conducted elections to the BBMP council even 25 months after the term of the previous body ended.

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