The Brihanmumbai Municipal Corporation (BMC) has been able to recover only 40 per cent of the estimated revenue for the ongoing financial year. The civic authorities say that COVID-19 outbreak delayed the tax collections.
Earlier on February 2020, the BMC had announced an overall Rs 33,441-crore budget for the 2020-21 financial year in which the civic body had estimated to generate Rs 28,448 crore in revenues. However, as of December 31, 2020, the civic body has been able to generate only Rs 11,616 crore.
From the property tax department, BMC has generated only 10 per cent of the estimated funds while it has generated only 18 per cent of the estimated amount from receipts of developmental plan. Meanwhile, from the water and sewerage charges, BMC has been able to recover only 35 per cent of the estimated amount.
The property tax, water sewerage charges and development plan receipts are some of the key sources of revenues for the civic body.
In the 2019-20 civic budget, the BMC had set a target of generating Rs 24,983 crore in revenues and as of December 2019, the BMC had achieved Rs 14,828 crores, which was 59 per cent of the estimated revenue.
Meanwhile, civic officials have stated, due to the pandemic outbreak, the tax collection of the BMC had taken a hit leading to poor collection of funds.
"The bills for property taxes were sent during December last year as BMC was heavily engaged in the pandemic outbreak" said an official.
"There has been a steady increase in water and sewerage bill payments, after we provided concessions under Abhay Yojana scheme, due to which we have extended the scheme believing it will generate more revenue in the remaining months," the official added.
Meanwhile, leaders of opposition parties have alleged that the BMC administration has not been transparent with the finances.
Ravi Raja, Congress corporator and Leader of Opposition in the BMC, had demanded a white paper from the civic administration seeking details of its financial status.
"There is no clear picture of the financial status as the management has not maintained any transparency, I have asked the civic administration to provide details of the expenses so that we can understand where we stand now" said Raja.
"At a time when we are facing heavy financial crisis, the BMC administration has offered heavy tax waiver to the Taj Hotels, this is heavily unfair" said Prabhakar Shinde, BJP group leader in the BMC.
Revenue collection from various departments till December 2020
Property Tax - Rs 6768 (estimated), Rs 734 (recovered till December 31)
Receipts from development plan - Rs 3879 (estimated), Rs 708 (recovered till December 31)
Water and sewerage charges - Rs 1,535 (estimated), Rs 545 (recovered till December 31)
Receipts from license department - Rs 221 (estimated), Rs 64 (recovered till December 31)
Receipts from roads and bridges - Rs 436 (estimated), Rs 108 (recovered till December 31)
