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Cash-strapped GHMC continues to grapple with paltry budget
GHMC, Hyderabad
- The civic body is paying 72.16% interest for over Rs 5,000 crore loans taken in 8 years
- SBI and other nationalised banks refuse to disclose whether the interest payments are done promptly by the government
- MLAs and corporators have been seen begging officials for funds
Hyderabad: While the State government is facing huge debts, the Greater Hyderabad Municipal Corporation (GHMC) has taken a total of a whopping Rs 5,275 crore loans from banks and is paying 72.16 per cent interest. The loans were taken in the last eight years.
The civic body is also facing a financial crunch with less budget approved in the current financial year.
In the RTI response filed by activist Robin Zaccheus, the Chief Financial Adviser of the GHMC stated that it has taken a loan of Rs 4,640 crore at a total interest rate of 23.35 per cent from the State Bank of India (SBI).It includes Rs 2,500 crore at 8.65 per cent interest, Rs 1,460 crore at 7.20 per cent interest and Rs 680 crore at 7.5 per cent interest.
While the budget income of the GHMC is Rs 6,150 crore, the total capital income of the budget estimates for 2022-23 is Rs 2,887.70 crore. Its total revenue is Rs 3,434 crore. Apart from the SBI loans, the GHMC also has two loans from bonds, Rs 495 crore at a total interest of 28.51 per cent and Rs 140 crore at a total interest of 20.3 from HUDCO (JnNURM and VAMBAY Housing Loan), said the chief financial adviser.
Robin claimed that the Municipal Administration department does not allocate funds to a constituency or corporator, and MLA-wise allocation to the GHMC for taking up development works.
He said, "There is absolutely no way for people to measure the development works taken up in GHMC.
This is precisely the reason why the majority of the decade-old projects like SRDP phase 4 – Trimulgherry to ECIL, SNDP, MMTS phase 2, RK Puram ROB, Vajpayeenagar-Neredmet RUB, Safilguda and RK Puram lake beautification, pending theme parks, new Malkajgiri district court building (recently approved), new Government degree college, Infra development in government schools, lack of community halls, gym facilities and bus-stops and lastly pending new roads/ repair of damaged roads are delayed due to lack of proper planning." He said the budget allocation for FY year 2022-23 is insufficient, looking at the pending development projects just in a single constituency.
The MLAs and corporators have been seen begging officials for funds regularly during public visits. Robin suggested that the GHMC budget should be allocated based on the pending development works of a constituency, rather than spending funds based on their abrupt decisions.
He said the State has already become debt-ridden; the Finance department has sent SOS to the government.
Interestingly, the RTI response from SBI and other nationalised banks has refused to disclose whether the interest payments are done promptly by the government, Robin rued.
