India Rating and Research (FITCH) has given an ‘AA+/Stable’ rating to Navi Mumbai Municipal Corporation (NMMC) for its financial performance during 2022-23, which can prove beneficial if it seeks investment from the private sector. NMMC is the only civic body in the country to have achieved an AA+ rating for eight consecutive years.
India Rating and Research (FITCH), a nationally recognized financial institution, declares the credit ratings of various institutions every year.
NMMC's financial condition is strong
“This is proof that the financial condition of NMMC is strong and by participating in the 'City Finance Ranking' initiative of the Government of India, the corporation has decided to increase its ranking at the national level,” said the municipal commissioner Rajesh Narvekar.
Despite the rise in expenses, the civic body maintained its financial condition. “Emergency expenses incurred during the last 2 years to take necessary measures in the fight against the Covid epidemic. The increased administrative expenses due to the implementation of the Seventh Pay Commission, allowances and differential amounts. Expenditure incurred to pay the difference of the last three years due to increase in minimum wages of over 6000 contract workers and the increase in GST tax payable on works done through contractors from 12 percent to 18 percent,” said a senior civic official.
Despite the above expenses being mandatory, the fixed deposits of NMMC reached ₹1750 crores in August 2023 from ₹1300 crores on March 31, 2023. These numbers clearly show that the financial position of the Municipal Corporation is strong.
NMMC is now completely debt free
In the previous financial year, the balance of MMRDA with the Municipal Corporation was ₹126 crore loan has been paid off in one lump sum and now NMMC is completely debt-free.
Property tax is one of the main sources of income of the NMMC and in order to increase the revenue from property taxes, the civic body is using state-of-the-art LiDAR technology to bring the properties that are not yet under property tax. This will increase the property tax collection by approximately ₹300 crores. Due to this, more funds will be available to the Municipal Corporation for development works and besides this, grants received from the government through GST and other matters.