The money or ‘capital budget’ was meant for developmental work in Mumbai, but was stashed away in a bank

Mumbai : In a shocking development, it has come to light that the BMC will earn an interest of a whopping Rs 1000 crore on the money that it was supposed to spend on developmental work in Mumbai. This money has been stashed away by the BMC in a bank.

For the last 12 years, 30-40% of the ‘capital budget’ of the BMC has been unused. The money in the capital budget is supposed to be spent on development work in Mumbai. The same amount, when unutilised, is deposited in the bank each year. In the year 2013-14, the BMC merely used 22-25% of the Rs 6430.33 crore capital budget
BMC chief accountant (finance) Ram Dhas said, “The income from revenue is spent on the BMC administration. These funds are used fully. We encounter obstacles while carrying out development work. So, the money in capital budget is not spent fully. This unused amount is then kept in the bank through 26 funds which include provident fund and pension fund. Both provident fund and pension fund are kept in abeyance while the other funds are used for completion of development work. This year the BMC has earned Rs 33,000 crore, an interest of Rs 1000 crore on the funds we kept in the banks.”
While planning the BMC budget, the corporation makes a ‘budget estimate’ and a ‘revised estimate’. The ‘revised estimate’ is the money that is actually slated to be spent. Both estimates include revenue expenditure and capital expenditure.

Capital Budget

While chalking out the budget, the BMC first takes an estimated cost. This is then revised and the amount in the revised budget is spent for various purposes.

YEAR Revised Expenditure percent
Estimates
(Crore)

2000 – 2001 917 647 70.61%
2001 – 2002 985 710 72%
2002 – 2003 1067 710 66.54%
2003 – 2004 1161 785 67.65%
2004 – 2005 1159 719 62.02%
2005 – 2006 1725 1213 70.36%
2006 – 2007 2624 1739 66.26%
2007 – 2008 3295 1990 60.26%
2008 – 2009 5636 3861 68.50%
2009 – 2010 6947 5089 73.27%
2010 – 2011 6448 5017 77.80%
2011 – 2012 5516 3954 71.69%
2012 – 2013 6521 4559 69.92%

Sachin Unhalekar

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