Nagpur Municipal Corporation (NMC) to record a satisfactory income in the first half of the current financial year. Against a target of Rs2,796.07 crore set for the financial year by standing committee chairman Prakash Bhoyar, NMC has generated a revenue of Rs1,131.2 crore between April 1 and September 30.
Municipal commissioner Radhakrishnan B had projected NMC’s budget of Rs2,607.6 crore for the current fiscal. The civic body’s half-year income stood at around 80.9% of the revenue target.
NMC continues to depend on government grants for revenue as the civic body generates less than 37% of it through its own sources, while it receives almost 62% in the form of government grants, including GST.
In the first six months of the current financial year, NMC received Rs826.17 crore as grant from the state government, including Rs701.87 crore as GST. NMC’s revenue from its own sources like water, property tax and town planning department is just Rs305.03 crore.
Only the town planning department’s revenue has already surpassed the target. Against Rs86.19 crore annual target, the department mopped up Rs1,14.97 crore in the first six months. With six more months left in the current financial year, the department is likely to generate additional revenue of over Rs50 crore, said sources.
Property tax department’s poor performance continued. To stay abreast with the target of Rs289.43 crore, NMC should have generated Rs144.71 crore, but created only Rs97.42 crore.
The water works department’s poor show also continued. Against a revenue target of Rs201 crore, the department has contributed Rs82.81 crore in the first half of the current fiscal.
There are other revenue sources which can contribute majorly in improving NMC’s own sources of income, including the market, estate and advertisement departments. These three departments have so far contributed a meagre Rs3.83 crore.
The dip in revenue has driven the civic body to tighten its purse strings. Radhakrishnan had already curtailed civic works. Sources said the civic chief has taken several measures to limit NMC’s expenses. “Only works with higher priorities are being allowed to go ahead,” said sources from NMC’s public works department.