Published On : Tue, Apr 18th, 2017

Nagpur Municipal Corporation stares at severe cash crunch

Nagpur : The civic body of Nagpur Municipal Corporation NMC has a reason to worry as it faces a financial crunch. The severe cash crunch has affected its plan to make a Nagpur city into smart ones and other projects have ran deep into troubled waters.

The Nagpur city which has gained importance on the political map as Chief Minister Devendra Fadnavis and Union Transport Minister Nitin Gadkari hailing from the city

The civic body is under the BJP rule for last 20 years. And many citizens are now expecting the city to transform at a rapid pace despite tight strings on NMC purses. The NMC had started with its property tax amnesty scheme which has failed to garner enough funds and now the body is sending auction notices to those who haven’t paid their property taxes. The property tax amnesty scheme got just Rs 186 crore against the expectation of 307 crore.

The other reason to worry is that despite fund crunch the NMC office-bearers are baffled with the fact that how the city is going to be a developed into a smart city. NMC’s total revenue is 29 percent of its budget and while 70 percent comes from government and the grants.


The ruling BJP failed to pump up revenue for the civic body. The NMC stares at a deficit of Rs. 540 crore. The civic body was expecting to garner revenue of Rs 735 crore from the Local body tax (LBT) in the year 2016, but till the month of March it could only earn Rs 450 crore.