Mumbai: BMC budget set to swell on cap, revenue expenditure

Mumbai: The Brihanmumbai Municipal Corporation’s (BMC) budget for Financial Year (FY) 2019-20 is likely to spiral due to the increase in revenue and capital expenditure needs. The increase in the revenue expenditure is due to the declaration of implementation of the seventh Pay Commission by the state government in January, while the increase in the capital expenditure is due to the increased allocation to the poster projects of the BMC.

“While the revenue expenditure is likely to increase by Rs 3000-4000 crore, the capital expenditure would also get additional amount sanctioned,” said an official in the BMC. The budget for FY 2018-19 was Rs 27,251.05 crore, of which Rs 17,723.25 crore was revenue expenditure while Rs 9,527.80 was capital expenditure. “This year, the budget is set to be around Rs 35,000-crore mark,” informed the official to The Free Press Journal.

The total strength of the BMC employees is 12,000, excluding the retired employees. The revenue expenditure include salaries, pensions, administration and sundry expense of the BMC. “The declaration of the implementation of the seventh Pay Commission would directly impact the salaries of these 12,000 employees. Thus there will be significant increase in the revenue expenditure of the BMC,” informed the official.

Besides, the BMC also plans to give special attention to speeding up of its poster projects with additional allocation. The poster projects of the BMC include the coastal road plan, 36 kms cycle track, Goregaon-Mulund link road and eight sewage treatment plants, and the funds will be allocated through the capital expenditure of BMC. However, the BMC had only used 30% of its allocated capital expenditure of the budget FY 2018-19, till December 2018.

The BMC budget in the FY 2016-17 was Rs 37,052 crore, in FY 2015-16 was around Rs 33,514 crore and in FY 2012-15 it was Rs 31,178 crore. But on the instruction of the mayor Vishwanath Mahadeshwar to make the budget more realistic, the BMC budget was reduced by Rs 10,000 crore. “This time, the budget is set to spiral again by Rs 7000-10,000 crore,” informed the civic official. The budget will be placed in the standing committee of the BMC today.

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