Another fictional budget from BBMP

Bruhat Bangalore Mahanagara Palike (BBMP) has presented another largely fictional budget, in keeping with what it had done last year.

Receipts at Rs 1,900 core, according to the revised estimates for 2007-08, fell short by a massive 62.5 per cent compared to the budget estimates.

Undaunted, the BBMP has projected a massive 49.5 per cent rise in receipts in the budget estimates for the coming year 2008-09 to Rs 2,842 crore. Why? It says in self justification, "This (shortfall in receipts) has been the trend in BBMP over the last 10 years. The gap in some years is as high as 40 per cent."

A key reason for the shortfall is property taxes netting only Rs 430 core against the budget estimate of Rs 610 crore. Yet, undaunted, BBMP has projected a property tax revenue of Rs 605 core in the current year.

It hopes this will become possible with the notification of the revised rules for the levy of Sakrama (regularisation of building rules violations) scheme which will have to await the installation of a new state government after assembly elections likely in May.

The only silver lining in performance is realisation of Rs 70 crore in advertisement tax against a budget estimate of Rs 9 crore, which BBMP trumpets as "a record increase of 800 per cent".

Another achievement is in 'own non-tax revenue' which is up 162 per cent to Rs 288 core in the revised estimates compared to the budget estimates.

BBMP Commissioner S Subrahmanya admitted that there has been a mismatch between the resources required for the city's growth and the resources available.

"BBMP has continuously faced the challenge of bridging the resource gap. This time, we have attempted to address the critical needs of the city and find the required resources," he added.

The additional receipts of Rs 942 crore projected for 2008-09, giving total receipts of Rs 2,842 crore, is expected to materialise from the following: While advertisement tax collections which registered an all-time high of Rs 67 crore in 2007-08 is expected to fetch an additional Rs 24 crore, collections from property tax will be Rs 175 crore.

"We expect the Sakrama scheme, which is geared at regularising unauthorised properties, will be implemented this year. That will bring in an additional 300,000 properties under the tax net," he said

The revenue from non-tax receipts will be Rs 250 crore and that from government grants is projected to be Rs 80 crore. Fund flow under the centre's Jawaharlal Nehru National Urban Renewal Mission is expected to increase from Rs 120 crore to Rs 350 crore.

The number of projects taken up under the JNNURM has increased from seven to 19. This apart, the BBMP intends to borrow Rs 250 crore from financial institutions.

"The emphasis of the budget is on infrastructure and welfare schemes," Subramanya said while pointing to some proposals on the anvil like the three elevated corridors: Between Sirsi Circle and Kengeri on Mysore Road, between Rajajinagar entrance and Yeshwanthpur and between Minerva Circle and Hudson Circle on J C Road.

The budget has earmarked Rs 205 crore for various welfare schemes meant for SC/ST communities. A total of Rs 8 crore has been earmarked for beautification of the road leading to the Bangalore International Airport.