Published On : Thu, Apr 2nd, 2015

Special State fund of Rs 100 crore released for NMC, network of roads planned in city

fundNagpur: In a good news for cash-starved Nagpur Municipal Corporation (NMC), an amount of Rs 100 crore, out of Rs 156 crore, to be received from Maharashtra Government as a special fund, reached the exchequer of District Collector’s office. The amount is likely to be transferred to NMC coffers soon. This information was shared with media by Ruling Party Leader Dayashankar Tiwari.

According to Tiwari, NMC will be constructing a network of roads at the cost of Rs 300 crore in the next financial year. The network of roads to be built includes main roads and some less busy ones. Similarly, the work of connectivity of cement roads will be completed, said Tiwari.

The expected total revenue of NMC at the end of financial year is likely to be around Rs 900 crore. Even though the financial year ended on March 31, 2015, the correct assessment of revenue could not be done following bank closing days and other holidays. The correct figure of income could be achieved in the second week of April only. The last year, NMC accorded its priority to collection of indirect Local Body Tax (LBT) instead of focusing on Property Tax, the main source of revenue. The wrong priority resulted in recovery of Rs 830 crore revenue only. However, the local body is hoping for increase in tally by Rs 125 crore in this financial year.

The NMC Administration and office-bearers were expecting a lot from Property Tax Department. A target of Rs 250 crore was fixed. But the chances are that the target would fall short by a staggering 80 percent. On the other hand, the target for LBT recovery was fixed at Rs 450 crore. The Accounts and Finance Department officials are expecting the possibility of hitting the target or nearby. According to the officials, the LBT Department has recovered Rs 410 crore (including Stamp Duty) and Rs 188 crore in Property Tax till March 30. The figures are certain to see a considerable jump as people tend to pay their taxes on March 31 the last day of financial year.

The Chief Accounts and Finance Officer Madan Gadge said the final figure of revenue could only be arrived at in the second week of April. Working in banks will be closed for two days and then there are festival holidays, said Gadge.

The target for Water Works Department was fixed at Rs 125 crore but reports said the department would lag much behind the figure.

NMC’s Town Planning Department is one of the important departments. The result of this department is under focus specifically from Municipal Commissioner. There are also reports that other departments such as Marketing, Advertisement, Fire Brigade are way behind their targets. The Chairman of Statnding Committee Ramesh Shingare will have to do a tight rope walk in preparing the budget. The figures of Rs 56 crore Cess and amounts of other heads are likely to be released within a week. Apart from the revenue of NMC, the Central Government is also expected to provide funds for several heads.