Money meant for welfare used for GHMC salaries
Sources of income for the GHMC include trade licenses, fines, rent for properties, etc.
From being the state’s highest revenue-generating body to a cashstrapped agency, the GHMC is struggling to pay its employees’ salaries and is using its revenues meant for city development.
This is because the state government allotted `1,000 crore to the road development authority in March 2017. Secondly, the government asked the GHMC to roll out `400 crore to the RTC and the burden of extra salaries to be paid to the sanitation workers has cost the civic body. The GHMC is using property tax and trade tax revenue to pay administrative bills, including salaries, while revenue is meant for citizen-centric development.
From being the state’s highest revenue-generating body to a cash-strapped agency, the GHMC is struggling to pay its employees’ salaries and is using its revenues meant for city development
A source revealed, “Revenue collected through property tax, trade licenses, rents and even regularisation schemes are being used to run the administration. Also with the recent hike in the salaries for sanitation workers, funds for TSRTC, the GHMC is getting burdened.” Maximum expenditure goes into salaries, maintenance of offices, transport and fuel. Very little money is left over for development works. Each zone is spending around `30-40 crore for maintenance, while major projects are pending due to lack of funds.
But, following the October rains, GHMC shelled out a large amount for road repairs from the revenue received, while funds were utilised for public service.
When the GHMC was questioned on whether the salaries for October will be met, a senior officer from the revenue department said, “For October, GHMC collected `62 crore through property tax plus the government sanctioned `84 crores from transfer duty and entertainment tax. With the `146 revenue received, GHMC will release `110 crore towards salaries, wages and pensions for its employees. Also, the corporation has written to the state government to allocate funds to carry out various civic projects in the city.
HYDERABAD FALLS into the list of top 10 cities that collect the highest property tax, grossing over `1,200 crore per annum.
OTHER SOURCES of income for the GHMC are trade licenses, fines, rents for GHMC properties, layout & building regularisation fees and town planning fees (building permissions).