Kolkata: Mayor of Kolkata Municipal Corporation (KMC) Firhad Hakim on Friday said the civic body is not withdrawing the 40 per cent embargo on its funds that was imposed due to a crunch while asserting that the current policy is “need-based development” and not random expenditure.
Commenting on whether the 40 per cent embargo that was imposed in the beginning of the ongoing financial year will be withdrawn in the upcoming financial year (2023-2024) in case there is adequate revenue collection, the Mayor said: “Till now the percentage of our revenue collection stands at 48 per cent. We have a financial burden presently pertaining to the hikes in salary, pension etc. under the Pay Commission. We are yet to get an amount of funds from the state government. There is a burden of about Rs 96 crore per month on our shoulders. Hence, we need to first deal with this situation and then think about withdrawal of the embargo.”
The Mayor highlighted that the present policy of the KMC is need-based development. “We are working to render all essential civic body services such as road repairs, drinking water supply, drainage system etc. Everything is being done to ensure our city looks clean and green. All this is being done despite the embargo. Our present policy is need-based development” he pointed out.
The Mayor emphasised that there should not be any unnecessary or random expenditure. “Even the rate of payment to contractors has also increased. We need to spend judiciously,” he said.
Hakim further highlighted that although the civic body is going through a fund crunch, it will continue to render services without increasing taxes. “We will not burden taxpayers and yet try to do our best to provide them with the essential KMC services,” he assured.
Millennium Post recently reported that the civic body has collected revenues worth Rs 900 crore approximately till December 31, 2022.
A senior KMC official said the civic body had set a collection target of Rs 1200 crore approximately for the financial year 2022-2023.
Due to an increase in expenditure but inadequate influx of revenues, the KMC had imposed an embargo on expenses which it considered as ‘non-essential’ in the financial year 2022-23. It had issued a notification where it had clarified that for creation, maintenance and repair of assets, there will be an embargo on the budget allocation. According to this, 60 percent of the funds can be spent while 40 percent will be reserved.
This 40 per cent can only be spent once an utilisation certificate is furnished showing that the rest 60 percent was fully utilised.