BMC in its book of budget estimate stated, after MHADA was appointed as development authority for MHADA layout, it has led to further loss of revenue.
By Varun Singh
BMC on Tuesday came out with its budget estimate for the upcoming financial year. The budget estimate has put the onus on government policy for loss in revenue.
It says, “As the state government has appointed MHADA as a development authority for developing MHADA layout, it has led to further loss of revenue.”
MHADA has 56 layouts in the city of Mumbai, where stand thousands of buildings. MHADA however, claims since they have been appointed a developing authority, files have started moving faster.
“Earlier, MHADA files would have to wait for permissions at BMC like any private developer. However, things have changed now as the files are moving at speed, because MHADA is the planning authority,” said a MHADA official.
BMC’s Development Plan department is the major source of revenue for the corporation. However, slowdown in real estate has adversely affected the income from this source.
Even property tax collection has gone down. Implementing the decision of exempting residential apartments up to carpet area of 500 sq ft from property tax has resulted in reduction of Rs 335 crore in annual demand. Above this, the wake of a slow down int he real estate sector and other markets, the quantum of defaults of payments of property tax has increased and the cumulate outstanding amount has reached around Rs 15,000 crore.
BMC in it’s budget estimate for 2019-20 had put the revenue figure at Rs 3,453 crore from DP fees and premium. However, they till December 2019, could reach up to Rs 2067.88 crore, they even revised the estimate and it was pegged at Rs 2935 crore, still the figure is far to reach. The budget estimate for the year 2020-21 is Rs 3879.51 crore
The budget estimate for revenue from Property tax was Rs 5016.19 crore, they could accumulate only Rs 1810.37 crore till December 2019. The budget estimate for the year 2020-21 is Rs 6768.58 crore
The loss in revenue is pinned on policy relaxation and fund to be received from state government and other public undertakings.
As per the DCPR 2034, from November 13, 2108 BMC’s share of premium towards grant of fungible Compensatory Area has reduced. Similarly the share of BMC in premium towards grant of Additional FSI on payment of premium has also reduced.
The outstanding dues from SRA against 25% premium for schemes sanction on BMC land is Rs 618 crore.
Because of the decrease in major sources of income, BMC now thinks it has become essential for them to work on innovate ways of increasing revenue without increasing the tax burden on common Mumbaikars.
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