The financial woes of Nagpur Municipal Corporation seem unending. Poor revenue generation and now coronavirus pandemic has dealt a body blow to the NMC finances. What has added to NMC misery is the 47% cut in GST grant from the state government from Rs 93 crore per month to Rs 50 crore. A NMC senior official confirmed that Maha Vikas Aghadi government has slashed NMC’s GST grant since April. Even in May, the civic body received Rs 50 crore only. The state government has also asked NMC to give details of its financial status including non-utilization of any reserve funds.
In April, NMC received Rs 71.68 crore, of which revenue from its own sources was a paltry Rs 7.57 crore. Civic body’s monthly committed expenditure is over Rs 100 crore. Lakhs spent for providing various facilities at quarantine centres has added burden to the burden. Following state government footsteps, NMC reduced the salary of almost all employees except sanitary workers and health department staff by 50%. Despite this, it is unable to disburse April salary to many departments. If shortage of funds continues it will put brakes on the city’s development works. NMC’s financial liability has increased manifold while its revenue has stagnated. Though municipal commissioner Tukaram Mundhe had taken various measures to streamline financial situation of the civic body, still it is finding it difficult to pay for city bus operations, fuel charge to contractors.
It even did not pay last two months’ outstanding to a pump supplying fuel to NMC vehicles. Sources said the situation touched a low in the last three terms of the BJP, which could not get proper roads constructed, sewage system has collapsed but the civic body continued to indulge in wasteful expenditure. Not just opposition leaders, but also ruling party corporators are complaining about their inability to address civic issues in their wards due to lack of funds. A senior BJP corporator from east Nagpur requesting anonymity said, “Without money how can we get works done? We are dependent on Smart City Mission or other central government schemes for money.” Standing committee chairman Vijay Zalke said he will soon hold a meeting with officials to assess the situation.
Major Income (April 2020)
- 7.57 crore—NMC revenue from property tax, LBT, water etc
- 50 crore—GST grant
- 14.11 crore—Stamp duty Committed Expenditure (Monthly budget)
- 45 crore—Salary and pension
- 10 crore—Street light & electric bills
- 9 crore—Loan repayment
- 2 crore—Water payment
- 8 crore—Payment to garbage operators
- 1.25 crore—Fuel
- 6 crore—Bhandewadi sewage treatment plant
Read More at: https://timesofindia.indiatimes.com/city/nagpur/gst-grant-cut-a-blow-to-nmc-finances/articleshow/75726821.cms