Mumbai: BMC uses Rs 3,000 crore from FDs to fund mega projects in city

In the past eight months, the BMC’s fixed deposits (FDs) have slumped from Rs92,636 crore to Rs89,353 crore as a whopping amount was infused into shaping big projects such as the Coastal Road as well as construction of bridges and stormwater drains before monsoon. The civic body's FDs are kept in various state-run and a few private banks.

SHEFALI PARAB-PANDITUpdated: Monday, November 28, 2022, 08:33 AM IST
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Mumbai: In the past eight months, the BMC’s fixed deposits (FDs) have slumped from Rs92,636 crore to Rs89,353 crore as a whopping amount was infused into shaping big projects such as the Coastal Road as well as construction of bridges and stormwater drains before monsoon. The civic body's FDs are kept in various state-run and a few private banks.

According to the report of the BMC's Finance Department, more than Rs3,000 crore from the FDs have been used up since January to September, 2022. The BMC had Rs26,876 crore in FDs in the financial year 2011-12. A three-fold rise was seen in FDs which increased to Rs72,000 crore in 2018. But then Covid hit and the income quickly dried up.

At Rs78,000 crore, the funds were stagnant for the past three years but they swiftly rose to Rs92,636 crore by end of January as huge revenue was generated from premium through development work. Other sources of income for the BMC are compensation in lieu of octroi and property tax.

In the financial year 2022-23, the civic body's budget increased by 17% from the previous year. It reached Rs45,949 crore with the help of Rs30,743 crore revenue from various sources and internal loans of Rs14,704 crore, which were raised from the FDs.

“Though the BMC has dedicated funds for projects like the Coastal Road in FDs, funds should be reserved for emergencies such as Covid. Since there is no standing committee or corporation to take decision on such matters, the administration is making decision on its own,” said BMC former opposition leader Ravi Raja.

Rs 50,952 crore FDs earmarked for mega projects

Rs26,283 crore FDs kept in EPFO

Rs1,500 crore comes as annual interest

Fiscal 2011-12: Rs26,876 crore in FDs

3-fold rise to Rs72,000 crore in 2018

Covid outbreak dried up funds

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