As per BMC (Brihanmumbai Municipal Corporation) officials, the civic body will revise its revenue target for the 2020-21 period. While the BMC had originally set a target of Rs 28,448 crore, authorities mentioned that there could be a shortfall of Rs 14,000 crore. Keeping this in mind, the BMC has decided to slash its original revenue estimates by 10%.
Civic officials added that the BMC had only collected Rs 980 crore as of July, hinting at bleak revenues for this financial year. “The ongoing situation of lockdown due to Covid-19 and dip in revenue will cause losses from Rs 12,000 crore to Rs 14,000 crore for 2020-21, which is half the income projected in the budget,” an official added.
This has now forced the BMC to try to save costs in practically all departments. As per a source cited by The Indian Express, sewage, solid waste management, water supply, and stormwater drain projects could likely face expenditure cuts.
The civic body has reportedly set a target of saving up to Rs 3,500 crore through these cuts. However, it was clarified that crucial projects pertaining to health and coastal road development will not be impacted by the cuts.
Read - BMC To Start Second Phase Of Sero-Surveillance On August 10
A senior BMC official said - “We are looking at around Rs 2,500 crore to Rs 3,500 crore cost saving for this financial year. An overall plan of changes in the budget has been prepared and it is under discussion.”
The fall in revenues comes as the civic body has been overworked by COVID-19 cases in the city. While civic hospitals were overrun with patients at some point, things have marginally improved now.
Officials mentioned that the lockdowns had given some reprieve to the civic body as expenditure was halted, consequently saving money. However, the aforementioned cuts will no doubt impact some crucial projects in the city, particularly relating to solid waste management and stormwater drains.
Also read - MMRDA Wants BMC To Pay Rs 54 Crore For Construction Of Two Jumbo COVID Facilities
Share
Tweet
