Date:22/02/2006 URL: http://www.thehindu.com/2006/02/22/stories/2006022221710300.htm
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Karnataka - Bangalore

BMP gearing up to present Rs. 2,000-crore budget this year

Afshan Yasmeen

New property tax scheme may not be introduced


  • Budget will be presented in the second week of March
  • Civic body will go to polls in November
  • More day care and citizen service centres planned
  • Infrastructure cess likely to come into force this time

    BANGALORE: The outlay of the Bangalore Mahanagara Palike (BMP) budget for 2006-2007 is likely to cross Rs 2,000 crores. Though the focus will be on several infrastructure projects, care is being taken to introduce several citizen-friendly schemes.

    With the civic body going to polls in November, the ruling Congress in the BMP does not want to spare any effort in making the budget a "pro-poor" and "citizen-friendly" one.

    While last year's proposals of smart health cards for economically weaker sections, Maruti vans for three needy and unemployed youth in each ward, "Sanjeevini" for nursing and expecting mothers will continue, more day care and citizen service centres are being planned.

    Officials and members of the Standing Committee on Taxation and Finance have started deliberations on the budget and are gearing up to present it during the second week of March.

    BMP Commissioner K. Jothiramalingam and his team of officials presented a Rs. 1,800-crore draft copy of estimates to the committee recently for finalising the budget. Sources in the committee said department-wise review meetings are being conducted. "We will consult leaders of all parties and residents' welfare associations before arriving at the final figures," a senior Congress corporator, who is also a member of the Taxation and Finance Committee, told The Hindu on Tuesday.

    Sources said the BMP which is planning (from the last five years) to introduce the new property tax scheme, based on capital value of a building, might not be able to do it this year because it happens to be an election year.

    Though the BMP had a property tax target of Rs. 320 crores last year, it has managed to collect Rs. 217.83 crores so far.

    "This time we want to present a realistic budget, which will help us match the revenue estimates with the receipts. Though there is a potential to collect over Rs. 400 crores through property tax, it may be difficult to achieve unless the tax rates are increased," the sources said.

    The levy of the solid waste management cess, which has been introduced with effect from January 1, will continue and the much-delayed infrastructure cess is likely to come into force this time. Apart from these, there are no plans to levy any new cess on the citizens, the sources said.

    Last year's budget, which had an outlay of Rs. 1,569 crores, aimed at implementing a string of projects, including upgradation of roads and pavements, construction of flyovers, grade separators, pedestrian subways/skywalks and railway under bridges (RUBs) and railway over bridges (ROBs) at a total cost of over Rs. 627 crores.

    Of these, four new flyovers planned at the Kanakapura Ring Road junction, MES Road, near the Peenya Dasarahalli Aiyappa temple, and Trinity Circle are yet to take off. These projects and more grade separators are likely to be included in the budget.

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