No tax hike in the election year

The civic budget has crossed Rs3,000-cr mark for the first time

Citizens have been spared from paying higher taxes this year.

Standing committee chairman Shyam Deshpande on Friday presented a Rs3,027.41-crore budget for 2009-10, which is a little over Rs346 crore as proposed earlier by municipal commissioner Praveensingh Pardeshi.

This is the first time that the civic budget has crossed the Rs3,000 crore mark. In the budget tabled before the general body, a sum of Rs1,929.86 crore has been earmarked for development works.

The general body will discuss the budget on Saturday before approving it. Although Pardeshi had earlier proposed a hike in all taxes except the general tax on property, the standing committee chairman has suggested that effective steps need to be taken to enhance the revenue earnings rather than putting an additional burden on tax payers.

Interestingly, the Standing Committee chairman has failed to suggest concrete measures to increase the revenue collection by the civic body, with civic officials and some elected members expressing doubts if the budget would be a realistic one, considering the recession.

Deshpande however said steps will be taken to fill in the gaps in the tax collection. "We will also add to the existing strength to augment the tax collection," he said.

Pardeshi had earlier proposed that the civic body would be able to generate Rs750 crore from the octroi collection in the next fiscal. The standing committee chairman has revised the target by another Rs100 crore, notwithstanding the downfall in the collection all over the state due to the slowdown.

According to the standing committee chairman, the civic body, besides earning Rs850 crore in octroi, is likely to generate Rs214 crore from general tax, Rs35 crore from road tax, Rs66.53 crore as government's aid,

Rs159 crore as charges for granting building permission and Rs536 from the urban development ministry under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

Deshpande has also proposed a loan of Rs360 crore.

Abhay Khairnar/ DNA-Daily News & Analysis Source: 3D Syndication

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