J&K urban local bodies to get Rs 23 crore more

While the Jammu and Kashmir government allotted Rs 95 crore for urban local bodies (ULBs) in its 2005-06 Budget, Rs 23 crore more is expected to materialise for them.

As recommended by the State Finance Commission, the share of the ULBs out of the divisible pool comprising value-added tax (VAT), which was earlier sales tax, state excise, taxes on goods and passengers, and taxes on vehicles, is 10 per cent of the total taxes collected, after deducting 10 per cent on account of collection charges.

"The urban Local bodies, which include the Municipal Corporations of Srinagar and Jammu, will be given their due share of divisible pool of taxes in accordance with the recommendations of the State Finance Commission," Muzaffar Hussain Baig, Jammu and Kashmir Deputy Chief Minister, who also holds additional charge of the Finance Ministry, said.

Ever since the change over to VAT regime from April 2005, there has been increase in the collection of taxes in the state. An amount of Rs 23 crore is expected to become additionally available to ULBs over and above the budgeted provision of Rs 95.23 crore.

"This is expected to provide support to these bodies in discharging their responsibilities in a more effective manner," Baig said.

However, Mayor of the Srinagar Municipal Corporation, Ghulam Mustafa, said that the state government had only released 1.5 crore rupees to the Corporation out of the budgeted allotment of Rs 7 crore.