B'lore City Corp plans medium term fiscal plan

With investments required for improving Bangalore's infrastructure being pegged at around Rs 20,000 crore, the cash-starved Greater Bangalore City Corporation (GBCC) has decided to bring out a medium term fiscal plan (MTFP) to facilitate fiscal transparency and citizens participation in the development projects to be undertaken by it.

An announcement to this effect has been made in GBCC's 2008-09 budget that was approved recently.

GBCC commissioner S Subramanya has explained: "MTFP will not only provide for a route-map for future developments but also continuity in the corporation's financial operations."

The MTFP will be in accordance with the Karnataka Local Fund Fiscal Responsibilities Act (2003), rules for which are yet to be framed.

With a MTFP, the GBCC hopes to get more funds from the Centre under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).

According to GBCC officials, JNNURM guidelines favour MTFPs as it ensures public involvement in the shaping of fiscal policies of urban local bodies.

Apart from MTFP, GBCC has also drawn up plans to realign its fund based accounts system with the National Municipal Accounting Manual to achieve standardisation of accounts.

Subramanya had said: "As a first step, we plan to change the salary payment mode for the 13,000 employees of the corporation. At present, the employees are receiving their salaries by cheques. We will switch over to the electronic clearance system. It will aid in better management of finances."

The GBCC also plans to put in place a computerised revenue model to keep track of receipts at various resource points, a move geared at plugging leakages in revenue flow.