TMC budget for 2021-22 ₹1.3K-cr less than last year

Civic chief focusses on improving revenue and maintaining existing assets in city

THANE: The Thane Municipal Corporation (TMC) tabled a budget estimate of ₹2,755 crore for the year 2021-22, a whopping ₹1,313Cr less than the revised estimate of ₹4,068Cr for 2020-21.

With the corporation elections slated next year, new projects were expected. However, the budget has no new project this year. The civic commissioner informed that the focus was merely on improving revenue and maintaining the assets already created in the city. The budget will be reviewed midyear when, depending on the financial and Covid-19 situation, the budget will be allotted for new projects. The budget also has no new increase in taxes as the corporation had increased the water tax the previous year.

Dr. Vipin Sharma, TMC chief, has termed it a realistic budget wherein the capital expenses are cut down by 49 per cent.

Sharma said, “The Covid-19 pandemic has hit the revenue this year. We will get a clear picture on Covid situation in the next few months. As of now, the budget is tabled on the present revenue situation. There are no new projects undertaken this year. We will only focus on maintaining the assets already created and allot budget for works that are important.”

The budget has allocated ₹935.37Cr for capital expenditure and ₹1,819 for revenue expenditure. The corporation has also allotted funds of ₹122.50Cr for Thane Municipal Transport (TMT). The opening balance this year is ₹55Cr.

Sharma added that the focus will be on generating revenue in these challenging times without increasing taxes. “We have not increased taxes. Our plan is to limit expenses, increase existing income sources and plug the gaps in revenue collection by improving tax collections.”

The corporation had taken a loan of ₹500Cr last year, out of which the present liability is ₹164Cr. No new loan will be taken this year while Sharma informed that 75 per cent bills of the contractors too are cleared. The state, too, has not yet paid ₹214Cr of stamp duty since 2019.

Slack in real estate hits budget

The slowdown in real estate has hit the budget as the corporation had to face losses of more than ₹800Cr, as the revenue of the town planning department plummeted in the year 2020-21. The previous year budget estimated a revenue of ₹984Cr for the town planning department, though the revenue earned till date is merely ₹164Cr. Similarly, the revenue of fire department, which also depends on allotting fire NOCs to the new construction, decreased to ₹48Cr from

the estimated ₹100Cr.

No decision on property tax waiver

The ruling Shiv Sena, though, has assured to waive property tax on flats less than 500sqft area, there is still no implementation of the same in the city. Sharma said, “When the focus is on increasing revenue, the decision on waiver might not be taken soon.”