BMC budget for 2016-17 up 10.5% at Rs 37,052 cr

Civic body proposes hike in octroi duty on crude, allocation of Rs 1,000 cr for coastal road

Shiv Sena and Bharatiya Janata Party-controlled BrihanMumbai Municipal Corporation (BMC) on Wednesday announced a Rs 37,052-crore budget for 2016-17, up from last year’s budget of Rs 33,514 crore. This is an increase of 10.55 per cent.

This is a crucial budget for the ruling alliance with the election to the country richest civic body slated for January or February in 2017.

BMC Commissioner Ajoy Mehta, who presented the budget, has projected Octroi collection of Rs 6,850 crore compared to Rs 7,500 crore in 2015-16; Rs 4,956 crore from property tax; Rs 1,244 crore from water and sewage tax; and Rs 6,284 crore from development planning department.
 

The civic body has proposed to increase Octroi duty on crude oil to 4.5 per cent from the present level of three per cent to make up for the loss it was incurring owing to the ongoing slide in its prices. According to BMC sources, the auto fuel prices in Greater Mumbai might surge in the wake of the increase in Octroi duty on crude oil.

CRUNCH NUMBERS

• Budget of Rs 37,052 crore presented ahead of civic body election slated for January-February next year
• Capex of Rs 12,874 crore proposed on a number of development projects
• Allocation of Rs 3,693 crore for health department
• Rs 2,394 crore for education department
• Rs 10 crore proposed for LED lights

However, the municipal commissioner has waived Octroi duty on ethanol to encourage mixing of ethanol in petrol in line with Centre's ambitious plan to promote green fuel.

The allocation of Rs 1,000 crore is proposed for the much-debated 33.2-km coastal road project connecting south and north Mumbai. The project, which entails an investment of Rs 13,000 crore, recently received final green clearance from the Centre. BMC is the nodal agency for the project. The civic body has already made its presentation to the Maharashtra Coastal Zone Management Authority, giving details of project execution. Green cover will be maintained on 90 hectares of the reclaimed land.

The civic body has also made an allocation of Rs 12,874 crore for the capital expenditure on a number of development projects, which are aimed at further upgradation of the city infrastructure including roads, storm water drains and water projects. A provision of Rs 130 crore has been made for the east-west connector Goregaon-Mulund Link Road and Rs 2,806.8 crore for city roads.

BMC has proposed Rs 10 crore as its share towards the Smart City project. Mumbai did not figure in the list of 20 smart cities declared last week by the Centre.