Mumbai civic body needs fiscal reform, says CARE

Suggests curb on establishment and wasteful expenses and improvement in efficiency

CARE Ratings has recommended extensive fiscal restructuring of the country's largest civic body, the BrihanMumbai Municipal Corporation (BMC).

The agency has pointed , among other things, to falling revenue from its traditional chief sources, such as octroi. The report was presented on Friday, on the BMC’s budget for the coming year.

The Budget size for 2016-17 was estimated at Rs 37,052 crore, neearly 40 per cent more than the revised estimate (RE) of spending for 2015-16 at Rs 26,479 crore.

Capital expenditure is estimated at Rs 12,874 crore or 69 per cent higher than the RE for 2015-16. Revenue receipts are estimated to be 17 per cent more than the RE for 2015-16.
 

“There has been a decline in revenue income from chief sources of revenue, mainly  octroi. Based on the collections till December-end and expected collections for the remainder of the fiscal, Rs 6,650 crore would be likely revenue from octroi on crude oil, 16 per cent lower than the budget estimates for the fiscal,” CARE said.

According to the report, there is also a decline in revenue income (19 per cent from the budget estimate for 2015-16) from the Development Plan department, especially revenue income from fungible floor space index, staircase and lift premiums.