The Brihanmumbai Municipal Corporation (BMC) announced on Tuesday its budget for 2020-21 with a total expenditure of 33,441 crore (8.95% more than in the previous year).
In an unusual action that, according to BMC sources, was the first of its kind, Commissioner Praveen Pardeshi thanked Prime Minister Uddhav Thackeray when he presented his first budget to the standing committee. He said, “For the first time, Mumbai-born Shri Uddhavji Thackeray is the honorable CM. This is a great opportunity to turn Mumbai into a happy city. “Much of the speech focused on improving happiness indicators such as B. fast commuting, pure water and high quality education and health services. The Chief Minister had identified the same priorities at a BMC meeting as part of his Mumbai 2030 plan.
Although revenue has declined (GBP 14,828 crore to December 2019), the BMC has forecast higher revenue (GBP 28,448 crore) for next year. Based on this expected income, the investment allocation was increased from 11,480 crore to 14,637 crore to finance large projects. Community Commissioner Praveen Pardeshi said: “We will focus on recovering the upcoming property tax, an increase of at least GBP 1,500 billion. The second source of income is the development premium through compounding. A large number of properties have added an unpaid area index (FSI), which can be regulated by paying an additional amount. "
Mr. Pardeshi referred to a BMC guideline in which additional FSI / fungible FSI are granted for the regularization of flower beds, decks and lofts under certain conditions in accordance with the development control rules. The BMC charges a compounding fee of 15% of the invoice amount for the unauthorized use of FSI. It is hoped that this step will increase 600 crore.
Mr. Pardeshi said the third main source of income was unused municipal property. He said: “Even though the leasing rates are frozen, we will charge additional fees if the usage changes or benefit from the renovation of such properties. In addition, by paying the necessary fees, vacant lots can become regular tenants. In the event of violation of existing tenancies, we have increased the rates. You also have to pay an additional FSI for regularization. This will help old tenants living in dilapidated buildings as the builder has to pay lease, penalty and FSI fees. The tenants are shielded. "
As last year, the citizen body will draw GBP 4,380.77 crore from its fixed deposits. A total of £ 52,635 million is committed to development projects and the remaining £ 22,000 million to commitments such as employee benefit funds. The city administration had drawn £ 5,708 million from its fixed deposits last year. The BMC plans to reduce revenue expenditure from 19,205 crore to 18,797 crore.
Feel the pinch
As municipal taxes have not increased in the past 10 to 15 years, 5% fee increases have been introduced for various services, such as the issuing of trade certificates, market certificates and birth certificates, in order to keep up with the inflation rate. However, the general tax burden was not increased. As part of property tax reforms, garbage, sewage and water charges are levied instead of water and wastewater taxes.
In a further first step, the local commissioner has allocated £ 300m to the stations so that they can start development work without having to contact headquarters for funds. Development work such as the improvement of footpaths, gardens, street signs and public toilets are carried out with the help of technical experts.
The budget also focused on acquiring reserved land as defined in the development plan by granting transferable development rights (TDR) or following the guidelines for reserving accommodation. If the property is affected, it can only be acquired through TDR, as payment from the BMC's coffers is not possible.
In the meantime, the civic administration has suspended recruitment to fill vacant positions until earnings pick up. The city authority hires trainees for a period of six months to one year, but does not give them a permanent position. So far, the BMC has paid 50% of the arrears according to the 7th Remuneration Commission and will pay the remaining amount in three installments.
Best Solutions Award: £ 15bn has been allocated to award grants / work orders up to £ 50bn to implement residents' solutions to key problems. The winners are determined based on the effectiveness of the participants and the financial criteria of the solution.
Garden in the Backbay complaint: A consultant was commissioned to prepare a detailed project report.
Decorative lighting: Worli Fort is decorated with energy-efficient LED lights. The project is expected to be completed in 2020-21.
Sports facility: A multi-storey building is being built in Ghatkopar.
Safety coating: 2,593 protective grilles are installed in the city on rainwater channels.