NMC’s special meet onfinancial crisis today

Source: The Hitavada      Date: 02 Dec 2017 09:25:12


Staff Reporter,

FACING near empty coffers and inability to mop up revenue by tapping fresh sources, the ruling Bharatiya Janata Party (BJP) has organised a special general body meeting of Nagpur Municipal Corporationon December 2 to discuss unprecedented financial crisis faced by civic body. Some tough decisions are expected to be taken during this brain-storming meeting. As reported earlier, the NMC’s income has dipped to mere 41% of projected income due to which developmental activities have come to a grindinghalt.

This massive drop in the civic body’s income has rattled the NMC administration and ruling party alike and this special meeting has been convened to discuss this issue threadbare. Ruling and opposition corporators are unhappy since the administration is unable to sanction funds for development works in their prabhags.

The Opposition Congress has directly accused the ruling party of step-motherly treatment. Monthly committed expenditure of the civic body is Rs 105 crore and during current fiscal, the NMC is able to generate only Rs 78 to Rs 80 crore. Unable to bridge this revenue gap, the NMC is expecting a liberal financial aid from State Government under Goods and Services Tax (GST) and also sustainable revenue share from the property tax.

Chief Minister Devendra Fadnavis has ruled out any further enhancement in monthly financial aid to NMC while asking the administration to improve financial planning and find out new ways to generate income. Recently, the Accounts and Finance Department of the NMC had given a paper to top-brass of the civic body clearly explaining in detail about the poor financial condition of the civic body. This eye-opening report has revealed thatthe NMC will require additional Rs 30 to Rs 35 crore per month to maintain the fine balance between committed expenditure and developmental works.The Standing Committee has presented the budget of Rs 2,266 crore of the financial year 2017-2018 before the