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Bad debts hit GHMC
Bad Debts Hit GHMC, Greater Hyderabad Municipal Corporation Tax Report. GHMC has a budget of Rs 3,800 cr, but is left with Rs 1,200 crore generated from taxes and licence fee Only 30% of the money promised by the Govt comes.
GHMC has a budget of Rs 3,800 cr, but is left with Rs 1,200 crore generated from taxes and licence fee Only 30% of the money promised by the Govt comes.
• Govt bodies owe up to Rs 600 crore
• LB Stadium- Rs 11 crore, Ravindra Bharathi- Rs 2.80 crore, Gandhi Hospital- Rs 175 crore, Secretariat- Rs 12.55 crore
And APTDC- Rs 3.74 crore.
We, the general public, face ire of the GHMC when we don’t pay our taxes. But that doesn’t seem to be the case with other government bodies in the city...or it seems that they are least bothered to clear their debts to the Corporation. Property tax is the major source of revenue to the GHMC and most government offices owe a huge chunk of it for many years now. But why are the other bodies laidback in clearing the debts?
They neither pay taxes nor do they release funds. This is the attitude of most government bodies towards the Greater Hyderabad Municipal Corporation (GHMC). For every small work that the GHMC undertakes, they have to depend on taxes collected from people. Most government agencies owe the GHMC for many years now. With the issue of bifurcation in full steam, Hyderabad remains the bone of contention. The city generates the highest revenue in the state and it would be interesting to see how the GHMC would get funds and grants.
Only on papers
Though officials at the GHMC say that their budget is Rs 3,800 crore, they aren’t receiving funds properly from the government. The only finances available to the GHMC are from taxes and trade licences which generate a revenue of Rs 1,200 crore. Sources say that only 30 per cent of the funds promised were released by the state and the Centre. Even for the 100 days sanitation drive undertaken by the GHMC recently, no funds have been released yet.
The 13th Finance Commission granted Rs 505.68 crore, but only Rs 81 crore has been released so far. With bad debts running to the tune of crores, the authorities are having a tough time completing the projects on time.
Blind eye to govt debts
The GHMC authorities seize and auction the property of a defaulter if they fail to pay property taxes. But with the government bodies, they are turning a blind eye. The irony here is that the government, which sets property tax collection targets to commissioners, is least bothered to pay its own dues. The dues have been accumulating over the years and it now roughly stands at Rs 600 crore, including the interest. Gandhi Hospital is the biggest debtor, owing the GHMC Rs 175 crore.
When Hyderabad Hans asked the GHMC Commissioner Somesh Kumar regarding this, he said, “I am awaiting a report on the list of defaulters. Once I get the report, I would take action against them.”
