Works sanctioned without funds

By Govind D. Belgaumkar

BANGALORE, FEB. 7. The Bangalore Mahanagara Palike (BMP) has a tough time ahead as it finds itself in its own trap of going beyond its means while sanctioning the works. Not only the BMP is unable to take up new works sanctioned for 1999-2000, it is left with an overall deficit of over Rs. 108 crores.

This fact has been admitted officially for the first time by the BMP in a document placed before the council, which met on January 29.

The document, tabled by the Joint Commissioner, Mr. Ashok Dalwai, points out that the BMP's demand for the year was Rs. 213.57 crores for various works, while the funds provided as per the budget was only Rs. 104.74 crores. The demand includes the pending bills of the contractors and the funds earmarked for spillover works.

Hinting that the works were sanctioned ignoring money required for the payment of pending bills and spillover works, the document shows how the finances of the BMP have been mismanaged. It points out how even the simple principle of providing for expenditure based on expected revenue has been thrown to the winds.

The BMP had allocated Rs. 104.74 crores for works for 1999-2000. But in reality, it was left with only Rs. 55.43 crores. This is because a substantial chunk of it - Rs. 33.51 crores - goes to other Government departments or agencies. This includes Rs. 14.77 crores given to Bangalore Water Supply and Sewerage Board (BWSSB) towards maintenance of public taps and water supplied to BMP buildings, and Rs. 7.39 crores to be given to Government as cesses collected on property tax and 11.38 crores for establishment charges. In addition, Rs. 15.79 crores goes to other departments such as education (Rs. 4.95 crores), health (Rs. 3.93 crores) and horticulture (Rs. 4.1 crores).

Though the BMP was left with only Rs. 55.43 crores for works on the paper, it had spillover works to the tune of Rs. 44.21 crores and pending bills amounting to Rs. 37.64 crores. Thus, it had a deficit of Rs. 26.41 crores in the beginning of the year itself. The document says that the BMP is not in a position to take up additional works unless extra funds are made available for the purpose.

Although this was the financial situation, the Standing Committee on Works sanctioned additional works to the tune of Rs. 71.6 crores in June, 1999 and another list of works involving an expenditure of Rs. 41.38 crores in October. But the second list of works has been withheld and only urgent works have been approved, which cost Rs. 10.82 crores. Thus the deficit works out to Rs. 108.83 crores.

Under the circumstances, the budgets of the BMP have been mere juglary of figures. The successive budgets have been showing surpluses, thanks to unrealistic statistics.

Though the previous Commissioner, Mr. K. P. Pandey, called for a realist budget, the BMP could not achieve it. It now remains to be seen how the present Commissioner, Mr. K. Jairaj, and his team will have a surplus while giving a realistic budget.

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