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Municipal Finance

Less than 60% of funds utilised

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The Hindu                      15.03.2013

Less than 60% of funds utilised

 

Reviewing the functioning of local bodies, the Economic Survey points out that compared to 2010-11 the performance of local bodies has improved in 2011-12. However, it was observed that all the tiers of the local bodies utilized only less than 60 per cent of the allocated sum. The survey further noted that there had been an increase in the utilization of grants-in-aid, beneficiary contribution and other sources in 2011-12 compared to the previous financial year. The service sector has reported better fund utilization than the productive sector. There had been higher allocation for women component plan, for the aged, children and for the disabled.

Listing out the notable achievements, the survey said several replicable models emerged in different places during the year and there had been a marked improvement in the participation of women, especially by self help groups, in local administration. There was improvement in service delivery.

 

Unsanctioned BBMP staff paid Rs 22 crore/year

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The New Indian Express                      11.03.2013

Unsanctioned BBMP staff paid Rs 22 crore/year

The cash-strapped Bruhat Bangalore Mahanagara Palike is spending nearly Rs 22 crore a year on salaries of 1,373 people occupying various posts that are not sanctioned by either the state government or the BBMP itself.

Most of them are originally from different government departments, while a few are contract employees hired by the Palike.

To do away with such posts, the BBMP Council recently approved new Cadre and Recruitment (C&R) rules framed by the Standing Committee for Administrative Reforms. The draft rules have been framed based on the number of required posts, employees, their educational qualifications and salaries.

The rules allow only a fixed number of employees in each section and department. So any excess salary withdrawal will immediately come to notice of the officials of the Accounts Department.

“The existing C&R rules were framed in 1971 and 1977. With the (implementation of) new rules, the burden of unnecessary staff can be avoided as salary withdrawal can be monitored easily,” V Vagish, chairman of the committee, told Express.

Interestingly,  when the committee started consolidating the number of employees, it did not get all information from the BBMP Administration Department. “We had to take the list from the Chief Accounts Office and get the details of the number of employees drawing salaries. When we compared the list with the sanctioned posts, we found 1,373 employees are working in unsanctioned posts and drawing salaries amounting to about `1.82 crore a month,” a source said.

A BBMP source said there were 17,991 sanctioned posts in the Palike, including those which were not required anymore.

At present, there are 11,418 employees in the BBMP, of whom 9,406 are the employees of BBMP itself and 639 are State government employees, including IAS and KAS officers, on deputation. There are also 1,373 employees working in various grades, whose posts are not sanctioned by the government.

Many of them had come with “influence letters” from people occupying powerful positions in the government, a source said.

In many departments, the committee noticed that there is a huge gap between sanctioned posts and the number of employees. For instance, in the Engineering Department there 616 engineers working in different sections, whereas the sanctioned posts are only 451.

In the Town Planning Department, which has only three town planners posts’ sanctioned, 38 people are working.

“An electrical engineer is working as a town planner. How can an engineer work as a town planner?” Vagish asked.

 

AMC registers fiscal deficit of 45% in 2012-13

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The Times of India                    11.03.2013

AMC registers fiscal deficit of 45% in 2012-13

AURANGABAD: Amidst poor tax recovery and a fiscal deficit of 45% in the current financial year, allocations for new development works and continuing last year's projects in the 2013-14 budget will be a challenge for the Aurangabad Municipal Corporation (AMC).

According to the sources, the budget which will be announced in the next 10 days, will have a limit of Rs 500 crore. But a year-on-year growth in expenditure is not likely to happen. "Anything above this mark would be non-realistic and may result in huge fiscal deficit," said the sources.

The municipal body had proposed a budget of Rs 786.14 for 2012-13 fiscal and generated a revenue of Rs 673.55 crore, capital income of Rs 99.65 crore and deposits and other income of Rs 12.94 crore.

The municipal body was expecting to generate Rs 230 crore through local body tax (LBT) in 2012-13. However, it will only be able to collect LBT in the range between Rs 170 crore to Rs 180 crore. Similarly, against the civic body's target of Rs 100 crore property tax collection in the current fiscal, the officials could reach Rs 45 crore till March end.

Water bill recovery, will amount to about Rs 20 crore, while the target was Rs 40 crore. The civic body was expecting Rs 65 crore collection from town planning in the form of fee and other charges. But the municipal body will not cross Rs 35 crore mark. Also, the AMC did not receive a special grant of Rs 100 crore from the state government, which was shown in its budget.

The differences in target figures and actual recovery amounts to a deficit of more than Rs 300 crore. 

Last Updated on Monday, 11 March 2013 10:13
 


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