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BMC hikes spending, most of it for staff

MUMBAI: Monday’s BMC finances was once introduced at the horns of a catch 22 situation. While the civic body’s earnings from its key sources have been declining during the last two years, its establishment costs (including salaries) have been ceaselessly expanding, with this yr poised to see the maximum such building up because of implementation of the Seventh Pay Commission’s suggestions.

To meet expenditure, the civic body, for the second one yr in a row, will dip into its reserved funds, which might be principally in the form of deposits in nationalized banks. After pay scale revision and the cost of arrears to over a lakh staff, BMC’s establishment costs are projected to head up by means of 10%.

In absolute terms, the costs will now be 56% of the finances. The BMC’s projected earnings in the 2019-20 monetary yr are Rs 24,984 crore from various sources, out of which it expects to spend around Rs 19,205 crore (earnings expenditure), or with reference to 77%, towards establishment costs.

This will leave it with best Rs 5,778 crore for public works, although the need is nearly double that, at Rs 11,480 crore (capital expenditure). It is the adaptation—Rs 5,708 crore—that the BMC plans to withdraw from its reserves.

Including it, the dimensions of the finances municipal commissioner Ajoy Mehta introduced is Rs 30,692 crore. The BMC’s primary source of income now could be cash it receives from the government because the implementation of GST and abolition of octroi. It won Rs 8,401 crore from the government in 2018-19 and is expected to obtain Rs nine,073 crore (Rs 672 crore greater than closing yr) in 2019-20.

Two key earnings sources, the improvement plan and belongings tax have been shrinking for two years due to a slowdown in the belongings marketplace, said Mehta. In the 2017-18 finances, Rs 4,997 crore was once estimated as earnings from the DP division, which reduced by means of over Rs 1,000 crore in 2018-19. This time, the projection has been whittled right down to Rs 3,453 crore.

As for belongings tax, the estimated assortment for 2017-18 was once Rs 5,205 crore, and for the following fiscal Rs 5,206 crore. The expectation for 2019-20 is lower by means of nearly Rs 200 crore. On expanding establishment costs, Mehta said, “We do not have an actual calculation of the weight at the civic body at this time. We gets an idea in the subsequent 10-12 days.” In his finances speech, he conceded, “BMC intends to put into effect the Seventh Pay Commission. We intend to put into effect some administrative reforms to curtail establishment expenditure by means of managing staff accountability and rationalizing human resource deployment.”

Taxing artwork & tradition

A provider rate has been proposed for the usage of artwork and leisure amenities evolved in recent times. These include an artwork and crafts village at Jogeshwari and the Malabar Hill viewing gallery. “The fees can be for the maintenance of these amenities, which we have attempted to deliver on a par with global requirements,” said Mehta. Opposition leaders said the finances had nothing “cutting edge”. “Shiv Sena had promised a belongings tax waiver for houses less than 500 squareft. It doesn’t find point out in the finances. Also, it’s disappointing that a provider rate is proposed by means of a rich company for the usage of artwork and leisure amenities,” said Samajwadi Party chief Rais Shaikh.

‘Starry’ Juhu gets a stroll of status

The BMC, as part of the Irlah Nullah rejuvenation challenge, has proposed a Bollywood stroll of status with the cheap provision of Rs 1 crore. As the realm around Irla Nullah in Juhu is home to several well-known Bollywood personalities and hosts there's aplan to set up a walking track, life-size statues of veteran celebrities will likely be put in. Locals have been pushing for this sort of challenge for several years.

Pedestrians’ ache to de-escalate in SoBo

In a relief for pedestrians who take the foot over-bridge (percent above) that links Chowpatty and Charni Road station over Marine Drive close to Mafatlal, the BMC has proposed an escalator at an estimated price of Rs 2.3 crore.

Fire brigade dept gets Rs 125 crore, to go shopping

The BMC on Friday made a Rs 125 crore provision to improve the fire brigade. The cash will likely be spent on buying 64m and above ladders, digital mobile radio methods, drones and prime volume, long-range water-cum-foam observe. The hearth brigade plans to open several mini hearth stations in 2019-20.

7 night shelters for homeless planned

Seven new night shelters for homeless are all set to come back up in the town this yr. At provide, the town has 13 operational nigh shelters and 8 are below restore. The BMC will construct 3 of the brand new refuge houses on amenity plots to be had with them, as allotted by means of the DP.

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