Hakim advises councillors to spend allocated funds prudently

Kolkata: With the Kolkata Municipal Corporation (KMC) getting requests to increase the councillors’ ward development fund since a substantial amount from it is getting deducted due to imposition of Goods and Services Tax (GST) and Cess, mayor Firhad Hakim said that it is not possible to increase the amount due to current debts but advised councillors to first spent the money allocated in the budget without any wastage.

Councillor Biswarup Dey has brought it to the attention of Mayor Firhad Hakim that Rs 40 lakh are disbursed every financial year for ward development fund but due to the imposition of 18 per cent GST and one per cent cess the total fund sees a reduction in amount. He explained that if rupees one lakh has been earmarked for some infrastructure development work, it is reduced to Rs 80000 as the rest of Rs 20000 is deducted on account of GST and cess. He said this is affecting development work.

Dey insisted that from the next financial year, the total amount allocated in the Budget for ward development be increased to Rs. 50 lakh from the existing Rs 40 lakh.

Commenting on the matter, Firhad Hakim admitted that a substantial amount is getting from the councillor’s fund for GST. and cess He, however, remarked that it is not possible to increase the budgetary allocation at this moment despite a record collection of taxes in this financial year so far. “There is a huge cumulative debt on KMC. A large sum of money also needs to be paid for KEIIP projects. We are already running a deficit budget despite a record collection of taxes in this financial year so far.”

The Mayor remarked that in several cases the budgetary amount allocated to the ward and borough funds remain unspent. He asked councillors to first spend the amount allocated and then if more is required for development works KMC will definitely consider it.

Hakim also warned against wasting or misusing funds. Without naming anyone, he said he has come to know of a councillor who for the sake of spending the funds got a perfect pavement demolished unnecessarily to install paver blocks. “Funds should be spent prudently,” the

Mayor remarked.