Mumbai: Outstanding GST dues amounting to Rs 1,400 crore from the Maharashtra state government has led to severe financial deficit on Pune Municipal Corporation (PMC) facing a severe annual financial shortfall of Rs 200 Crore accumulating since 2019 putting significant strain on delivering essential civic services and complete vital infrastructure projects in the deccan city.
The financial challenge for PMC started with merger of 34 villages in 2017 contributing to additional stamp duty collections but the funds not credited to the civic treasury and GST dues not settled by the state owed to PMC.
The PMC former standing committee chairman Hemant Rasane had raised the issue in 2021 over delays in payment to the civic treasury by the state government to the tune of Rs 1,095 crore since 2019 which has now become Rs 1400 crore leading to severe shortfall in the civil coffers.
“The financial shortfalls and rising annual deficits with major infrastructure projects like Pune Metro has led to severe financial strain on other civic services like drainage, sewage treatment, road repairs and power supply. The slow down paced of critical civic services will have catastrophic consequences on public utilities and services in Pune,” said senior Urban Development official raising concerns on the poor planning and management of civic funds.
The civic infrastructure and development demands of the newly merged villages for critical civic services like drainage, sewage treatment and road improvement has been delayed lacking funds.
The PMC commissioner Rajendra Bhosale has sent several reminders to the state government to clear outstanding dues for essential civic services and development of the rapidly urban demands of the deccan city.
The PMC letters demand timely release of GST and stamp duty dues to face the rising financial hardship to manage the civic needs of Pune city.
