As the Brihanmumbai Municipal Corporation’s (BMC), Asia’s richest civic body, is facing a cash crunch, the opposition party in the civic corporation criticised it saying that despite a plunge in earnings this time, the administration hasn't cut back on spending. Moreover, the BJP claimed that BMC might soon head towards bankruptcy.
The BMC is also gearing up for the budget 2021-22, which will be presented before the standing committee in the first week of February by municipal commissioner IS Chahal, is unlikely to introduce new taxes for Mumbaiites.
Against its expected revenue of INR 28,448 crores, the BMC has managed to earn INR 11,616 crores till December 2020, with its finances disarrayed by the COVID-19 pandemic.
Lashing out at the statement by the BMC on its income, BJP said that the civic body has no plans in place to ensure the full recovery of property tax, while it has slashed the rates on licence fees that further throttled its earnings. The party also alleged that the civic body has been cooking up numbers to show a surplus in its accounts.
Besides, the BJP leaders also stated that the civic body is doling out concessions like discounts on premiums to developers, and to advertisers, ignoring the common man who is still reeling under the burden of taxes.
According to reports, the BMC budget for 2020-21 was pegged at INR 33,441.02 crores, which was 8.95 per cent more than the previous year’s budget. The budget for 2019-20 was pegged at INR 30,692.59 crores. However, it would be interesting to look at the much-awaited budget this year, which will prioritise expenditure on key departments such as health, education, and infrastructure-related developments such as roads and the coastal road. Funds will be allotted for at least one new infrastructure project that has been on the cards in 2020.
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