IIM to help NMC tide over financial crisis

Source: The Hitavada      Date: 01 Jan 2018 13:34:23

Special Correspondent,

Cash strapped Nagpur Municipal Corporation (NMC) will seek help of students of prestigious Indian Institute of Management (IIM), Nagpur to study and improve its dismal financial position. The civic body will provide access to them and furnish information regarding finances of the local body and has urged them to study the finances and recommend new avenues to generate income.

Municipal Commissioner Ashwin Mudgal while confirming this development with The Hitavada said, these students are bright and they will definitely give us some important suggestions to improve financial health of the local body. The proposal will be submitted to management of IIM in January.

The financial position of the civic body is precarious and it is passing through a very difficult phase. The NMC has generated Rs 1,090 crore till the end of the year as against the projected income of Rs 2,271 crore for the year 2017-2018. The civic body is solely dependent on the government grants. The government has given Rs 300 crore for various developmental works while it has received Rs 450 crore as Goods and Services Tax grant. The income of the civic body from water tax is Rs 95 crore only while it has received Rs 240 crore from property tax and other sources of income. The commissioner will present his revised budget and proposed budget on February 15. He may cut the allocation on major developmental works.

Recently, the NMC has urged State government to increase grants under GST. However, Chief Minister Devendra Fadnavis has outrightly rejected their demand. Mayor Nanda Jichkar, Ruling Party leader Sandip Joshi along with Municipal Commissioner Ashwin Mudgal are trying hard to increase grants under GST. Presently, the NMC is receiving Rs 51 crore every month while its requirement is Rs 85 crore. The committed expenditure of the local body is around Rs 100 crore per month and it is very difficult for the civic administration to carry out developmental activities in deficit budget.

The administration is also working hard to get pending grants from the State Government. The grants of Rs 25 crore of the teachers has been pending with the government. The grant of Rs 22 crore of Malaria and filaria department is also pending with the government for last 19 years. The funds of Rs 20 crore under Local Body Tax (LBT) from Stamps and Registration Department are also pending with the government. The civic administration is striving hard to get pending funds from the State government so as to tide over financial crisis.