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Only 15p from 1 Rupee is spent by BMC for Capital Works

March 22, 2012

Brihanmumbai Municipal Corporation (BMC), the corporation of Mumbai presented its budget on March 20th, 2012 with a development focus. The budget outlay for 2012-13 is Rs. 26,581 crore, an increase of 26 percent over last years budget of Rs. 21,096 crore. A comparison of BMC’s budget with some other cities & states will give you a perspective on the magnitude.

2012-13 BMC budget: Rs. 26,581 crore
2011-12 budget of other cities

  • Bangalore: Rs. 9317 crore
  • Delhi: 7500 crore
  • Kolkata: 3223 crore
  • Chennai: 1945 crore

2011-12 budget of some states

  • Himachal Pradesh: 16,708 crore
  • Goa: 8000 crore

Its important to understand the quantum of funds allocated for development work in the city. The developmental works are covered under Capital Expenditure which is Rs. 9354 crore or about 35 percent of the total budget. Assuming that this includes 12 percent profit margin of contractors, the actual proportion of development work is only 31 percent. The historical data of utilization of  this capex fund further diminishes the projected outcomes. The BMC has not used funds amounting to more than Rs 4000 crore on an average every year since 2007, in 2011-12 the unutilized amount was Rs 6137 crore. So a simplistic representation would be that only 15p from every 1 Rupee allocated in the budget will be utilized for capital works.

There is some comfort from the heads of capex, that supports the much desired focus for Mumbai.

Traffic operations, roads and bridges: Rs 1812.47 crore
Water supply: Rs 2479.27 crore
Storm water drains:
 Rs 1325.47 crore
Health: Rs 655.45 crore
Sewage disposal: Rs 851.67 crore
Solid waste management and transport: Rs 308.41 crore
Fire brigade and disaster management:
 Rs 138.72 crore
IT: Rs 130.77 crore
Market and Deonar abattoir: Rs 55.92 crore
Repairs of municipal properties & slum improvement: Rs 93.60 cr
Repairs of primary school buildings: Rs 367.01 crore
Others: Rs 1,141 crore

Top of the list is Water Supply, followed by Roads and Drainage in that order. While there is a promise of 24-hours water supply, the water charges has also been revised upwards. There are going to be protests from some quarters to roll back the hike in water charges, but then the scarcity of water need to have a bearing on its price. Budget allocation for roads have increased by 106 percent, much of this would be for concretizing. 800 crore would be spent to concretize 241 kilometers this year, and an equal length would be carried for next 5 years. The 26/7 manmade disaster of urban floods caused by inadequate & poorly maintained drainage system has ever since featured high in BMC budget. The Brimstowad project is expected to finally get completed by 2014, though the BMC is yet to receive 2700 crore from the Central Government.

There is a particular budget allocation that calls for special mention – Education. The BMC wishes to extend ‘learning by virtual classroom’ concept to 400 schools this year. Last year 80 schools benefit through this technology of beaming lectures via satellites. Its also encouraging to see efforts to promote green spaces, and bring nature into citizens’ lives. A 150 crore revitalization program for the Byculla Zoo and 43 crore allocation for developing an Estaurine Park near Mahim Creek would be ‘green-tastic’ initiatives.

I would have liked to see a dedicated budget allocation for improving security framework for the city in line with international cities. The police should be assisted with specialized infrastructure and control mechanism to conduct premptive action rather than have to react in emergency situations. Dedicated helicopter services and infrastructure to deal with accidents, medical emergencies and security threats must be planned.

Mumbai is amongst the world’s great cities for many reasons, but we hope to see it in the list of ‘best cities’. There are immense challenges and so are the opportunities, let there be government action, political will and citizen support to make it happen.

One Comment leave one →
  1. June 1, 2012 4:13 pm

    great, people of mumbai must co-operate BMC

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