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GHMC still faces cash squeeze
The Greater Hyderabad Municipal Corporation (GHMC) continues to be cash strapped despite approval of Rs 5,643 crore for financial year 2017-18 towards budget and will have to depend on extra budgetary resources like raising bonds and term loans.
Hyderabad: The Greater Hyderabad Municipal Corporation (GHMC) continues to be cash strapped despite approval of Rs 5,643 crore for financial year 2017-18 towards budget and will have to depend on extra budgetary resources like raising bonds and term loans.
According to GHMC budget document, the GHMC will have to float municipal bonds ( Rs 1,000 crore) and Rupee Term Loan ( Rs 2,500 crore) for implementing prestigious projects like Strategic Road Development Plan and others including two bedroom housing scheme.
Sources said it has become general practice for the GHMC to inflate its budgetary figures. The Corporation projected the revenues in 2017-18 at Rs 2,926.82 crore as against Rs 2,723.24 crore in 2016-17 and the revenue surplus in the next financial year would be Rs 310.55 crore assuming that the State will release Rs 1,000 crore which it had allocated in the budget and taking into account the GHMC share in State taxes.
It may be mentioned here the GHMC does not get its share of professional tax that is collected by the government. Instead of giving its due share, the government transfers a lumpsum amount. Similarly, it does not remit the entertainment tax.
The only bright spot is that the government transfers its share from stamps and registration. While the GHMC in its pre budget proposals sought Rs 2,011 crore, the government allocated only Rs 1,000 crore. While the GHMC wanted Rs 253 crore for two bedroom housing scheme, the allocation was zero. However it was promised another Rs 150 crore for Musi river front.
According to GHMC sources unless the government allocates funds of Rs 500 crore for taking up white topping of roads and Rs 253 crore for housing scheme, it would not be possible for them the go ahead with the works. It also requires Rs 300 crore for widening of nalas and additional funds for taking up Haritha Haram and other such programmes.
Going by the past budget records, there is nothing to feel elated about the government’s announcement of allocating Rs 1,000 crore for GHMC. Year 2013-14 just a year before formation of the State was the only best year where the government allocated Rs 173 crore and released the full amount. But in 2014-15 about Rs 250 crore were released as against allocation of release Rs 376 crore.
