EDMC needs Rs 600 cr bailout package for proper functioning
21 Nov 2014 11:15 PM GMT
The office bearers, while presenting the yearly budget on Thursday, informed that the body has made all efforts to increase revenue but have failed to cure the ailing EDMC and now, they are totally dependent on the government to minimise the deficit.
The commissioner of EDMC, Manish Gupta, tabled the budget which revealed that despite introducing hikes and new taxes, the civic body will earn Rs 1,583.44 crore in 2015-16 while the planned as well as non-planned expenditure has been estimated to be around Rs 2265.52 crore. As the difference between revenue and expenditure is almost Rs 682.07 crore, the commissioner said that they have sought a bailout package but now, all depends upon the government to accept their demand.
Notably, if the government releases special package, the EDMC will still incur a loss of Rs 80 crore and it requires special package every year for smooth functioning.
‘As majority of the properties fall between D to G category, it gives lesser revenue in comparison to other bodies. Though we are revising tax rates and taking other measures, we will have to heavily depend on aid to run the body,’ said the commissioner.
Announcing the revision of rates, the commissioner said that the one time parking rates while purchasing of all category vehicles are proposed to be hiked. Rates of vehicles costing up to Rs 10 lakh have been doubled while rates of vehicles costing above Rs 10 lakh have been revised with manifold increases.
Similarly, the parking rates for all category vehicles have also been proposed to be doubled for monthly and yearly users. The new taxes which have been introduced are education cess, betterment taxes and professional taxes. With the imposition of these new taxes, the EDMC will be liable to collect additional taxes from the people who earn between Rs 5 lakh to Rs 25 lakh per year.
‘With imposition of the tax, EDMC will earn up to Rs 2,500 every year from an individual and the entire effort will add Rs 40 crore,’ said Gupta.
Meanwhile, emphasising on cleanliness of the region, the civic body announced a slew of measures and informed to allocate appropriate funds. They claimed that implementation of zero waste management is on the cards and once it will be regulated, disposal of waste will be on every level and the rag-pickers will work in a proper manner.Â
The commissioner of EDMC, Manish Gupta, tabled the budget which revealed that despite introducing hikes and new taxes, the civic body will earn Rs 1,583.44 crore in 2015-16 while the planned as well as non-planned expenditure has been estimated to be around Rs 2265.52 crore. As the difference between revenue and expenditure is almost Rs 682.07 crore, the commissioner said that they have sought a bailout package but now, all depends upon the government to accept their demand.
Notably, if the government releases special package, the EDMC will still incur a loss of Rs 80 crore and it requires special package every year for smooth functioning.
‘As majority of the properties fall between D to G category, it gives lesser revenue in comparison to other bodies. Though we are revising tax rates and taking other measures, we will have to heavily depend on aid to run the body,’ said the commissioner.
Announcing the revision of rates, the commissioner said that the one time parking rates while purchasing of all category vehicles are proposed to be hiked. Rates of vehicles costing up to Rs 10 lakh have been doubled while rates of vehicles costing above Rs 10 lakh have been revised with manifold increases.
Similarly, the parking rates for all category vehicles have also been proposed to be doubled for monthly and yearly users. The new taxes which have been introduced are education cess, betterment taxes and professional taxes. With the imposition of these new taxes, the EDMC will be liable to collect additional taxes from the people who earn between Rs 5 lakh to Rs 25 lakh per year.
‘With imposition of the tax, EDMC will earn up to Rs 2,500 every year from an individual and the entire effort will add Rs 40 crore,’ said Gupta.
Meanwhile, emphasising on cleanliness of the region, the civic body announced a slew of measures and informed to allocate appropriate funds. They claimed that implementation of zero waste management is on the cards and once it will be regulated, disposal of waste will be on every level and the rag-pickers will work in a proper manner.Â
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