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Friday, March 5, 2010

Maha govt draft budget has more money for security & development

The February 13 blast at German Bakery that took 17 lives and brought the city up-close to terror has had a deep impact on the Rs 3,196.12-crore draft budget for 2010-2011 tabled by outgoing standing committee chairman Nilesh Nikam on Thursday.

Installation of closed circuit television cameras in the busy parts of the city, new fire stations and more ambulances to handle crises have been recommended by the draft budget.

Nikam has mooted the monorail project to address the city's transportation needs. The other highlights include an innovative scheme to provide emergency financial help to accident victims and allocations for a Right To Information library where citizens can access information under one roof.

While Rs 1 crore has been allocated for crisis management, a Rs 1.80 crore provision for fire stations and a Rs 40 lakh funding to increase the ambulance fleet have been made. "We must get ready to combat any crisis. Security of the city and its citizens is top priority and the PMC will perform its duties, " said Nikam.

The committee set aside Rs 25 crore for a monorail and Rs 25 crore for the Pune Mahanagar Parivahan Mahamandal Limited.

"We have taken a comprehensive review of the income and expenditure to present the Rs 3,196.12-crore budget. Municipal commissioner Mahesh Zagade had presented a draft budget of Rs 2,910 to the standing committee. We have increased revenue targets for octroi, general, property and water taxes and development charges. They are achievable if the civic administration improves its efficiency to collect revenue," Nikam told reporters on Thursday.

Zagade's draft budget had proposed a steep hike in octroi, water charges and other municipal taxes stating that the increase was imperative to mop up funds for major development projects worth Rs 1,634 crore.

The standing committee and the GB have already passed the 11 per cent tax hike proposed in the 2010-11 civic budget which will be implemented from April 1. Accordingly, the 11 per cent hike in the service tax structure will be brought into effect, as will a steep hike on property tax for the IT sector and charging of octroi on gold and silver on the basis of Value Added Tax.

Zagade had stated that he wanted to change earlier trends of inflated budgets to present a realistic budget based on the actual income sources. However, Nikam's draft budget is inflated by Rs 286 crore.

"We have not inflated the budget based on unrealistic figures. The revenue targets have been increased, but we are providing the infrastructure and manpower to the civic administration to meet these targets," said Nikam.

Landmark budgets

The civic body crossed the Rs 500-crore mark in 2001-2002 for the first time. The next milestone came in 2005-06, when the then municipal commissioner tabled a Rs 1,273-crore draft budget. In 2009-10, the general body approved a Rs 3,027.41-crore budget.

Standing committee chairman Nilesh Nikam has proposed an outlay of Rs 1,987.43 crore for capital and development works in his draft budget.

The key allocations

Projects Proposed Allocation

Roads, traffic, bridge, Rs 482.33 river improvement

Water supply and projects Rs 141.07

Sewage treatment Rs 84.41

Solid waste management Rs 106.25

Public transport and special Rs 88.75 projects

Ward level works Rs 122.40

(figures in crores)

Privatisation of octroi?

Octroi being a major source of revenue, the standing committee has set a collection target of Rs 912 (29 per cent of the total income). The standing committee has discussed privatisation of octroi collection to curb irregularities and increase the revenue. "As per the discussions, start-operate-transfer can be an option for octroi collection," said standing committee chairman Nilesh Nikam. The octroi department will get a provision of Rs 10 crore to install scanning machines and tracking systems. "We are also increase the staff in the octroi department," said Nikam.

Moves to rake in the moolah

* Cash award for persons informing about octroi evasion

* Arbitrator to settle water tax and property tax disputes; Rs 100 crore expected from settlement of disputes.

* Cash award for those giving information about unassessed property.

* BOT system for sky sign advertisements.

* Efficient collection from MSEDCL and cable companies for digging up roads to lay cables; Rs 100-crore dues to be recovered this year.

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