Nagpur: The Municipal Commissioner Shravan Hardikar on Wednesday (January 27) presented the Revised Budget for the financial year 2015-16 and the Proposed Budget for 2016-17. Both the Budgets are being sent to Standing Committee for its approval. Citizens were spared as no fresh taxes have been proposed.
The Revised Budget:
In the Revised Budget for 2015-16, the expected revenue has been pegged at Rs 1474.98 crore and the expected expenditure at Rs 1474.92 crore.
The proposed income:
Similarly, for the year 2016-17, the revenue of Rs 1534.45 crore has been proposed in the Proposed Budget. The total proposed revenue stands at Rs 1540.27 crore including closing balance of Rs 5.82 crore. The Nagpur Municipal Corporation is expected to mop up the proposed revenue of Rs 1540.27 crore. The proposals include revenue of Local Tax Body (LBT) Rs 75 crore, Property Tax revenue at Rs 250 crore, Water Tax Rs 125 crore, market recovery Rs 7.55 crore, revenue from Town Planning Department Rs 62.10 crore, Grants in lieu of LBT Rs 550 crore and other miscellaneous income (including grants, loans, investments, advances etc) Rs 464.80 crore. The total revenue proposals for the year 2016-17 Proposed Budget minus Rs 100 crore have been pegged at Rs 1434.45 crore.
The proposed expenditure:
For the year 2016-17 Proposed Budget, the expected expenditure is likely to be at Rs 1534.44 crore including Rs 329.44 crore towards salaries of employees, administrative expenditure at Rs 31.64 crore, pensionary benefits at Rs 130 crore, maintenance and repairing at Rs 238.97 crore, capital expenditure at Rs 718 crore and other miscellaneous expenditure at Rs 86.39 crore. The closing balance (31-03-2017) will be Rs 7.50 crore.
Local Body Tax:
The Municipal Commissioner, in his Budget speech, said that while presenting the Proposed Budget for 2015-16, the LBT system was in existence. However, considering strong opposition to the LBT from traders, the tax was scrapped from August 1, 2015 for traders having annual turnover of Rs 50 crore. The scrapping of LBT deprived the NMC from a major source of income. However, the civic body is receiving Assistance Grants from the State Government in lieu of the LBT. In the year 2014-15, NMC garnered a revenue of Rs 400.17 crore towards LBT. In the current year, the Standing Committee has fixed a target of Rs 450 crore. During the period from April to November the LBT revenue stood at Rs 179.16 crore. The total revenue, including one percent Stamp Duty of Rs 20.76 crore accumulated with State Government and Rs 123.92 crore as Government’s Assistance Grant, stands at Rs 323.81 crore. For the year 2016-17, income of Rs 75 crore has been fixed from LBT and Assistance Grant of Rs 550 crore is expected from State Government with total standing at Rs 690 crore including Rs 65 crore revenue on account of Stamp Duty.
Smart City project:
The top boss of NMC said that the civic body, striving hard for the past four months, prepared a ‘Smart City’ proposal with the help of ‘Delivering Change Foundation.’ The NMC sought suggestions and opinions over the concept of a ‘Smart City’ directly from citizens as well as experts by launching a campaign. The campaign received an overwhelming response as over 3.5 lakh citizens participated. Subsequently, based on the ideas and opinions of more than 2.5 lakh citizens, the NMC prepared the ‘Smart City’ proposal. The civic body submitted the Rs 3351 crore proposal to the Central Government even before the December 15 deadline.
Highlights of the Budgets:
• No fresh taxes have been proposed for the year 2016-17. The coverage of services are only to be increased this year.
• At present there are 1 lakh water pipeline connections in city. Around 2 lakh connections are likely to regularized in 2016-17. No JNNURM grants have been received in connection with water supply but likely to be received in the current financial year giving momentum to Water Supply Department work.
• NMC is giving its land for Metro Rail project. Measurement of the land is going on. The civic body has to provide Rs 58 crore for the project as its share.
• Under health services, IGMC and Panchpaoli Maternity Home would be developed in 2016-17 for extending treatment at affordable cost. Day Care Ward facility would be provided to cancer patients.
• First time the Transport Budget will be presented in the next financial year. A provision of Rs 12 crore will be made for transporting. The new bus operator will be appointed soon under which 50 green buses and 150 red buses will be run.
• In the next 18 months, all the properties will be surveyed and marked through GIS. The revenue of Property Tax declined in 2015-16 due to assessment of rented properties on the basis of new tax system. However, recovery of the tax is likely on higher side in the next financial year.
• Rs 100 crore were received in 2015-16 for construction of cement roads. The amount could go up in the next year.