In Nagpur, Abhijit Bangar, Municipal Commissioner revised the standing committee’s budget for the financial year 2018-19 by 22% that took the budget from Rs.2,946 crore to Rs.2,277.06 crore was left unmatchable by the Nagpur Municipal Corporation.
The property tax is the main source of revenue, the Nagpur Municipal Corporation only managed to collect Rs.210 crore by the closing of financial year that ended on 31st March. The standing committee had aimed to collect Rs. 509 crore that was revised to Rs. 275 crore by Bangar.
One of the tax department officials said that the revenue generated from property tax only includes RTGS and the online payments are not part of the same. Also, the tax recovery from the Government establishments are not included. However the inclusion of these taxes would increase the total by Rs. 5 crore totaling to Rs. 215 crore.
Earlier there were reports that the Nagpur Municipal Corporation [NMC] is likely to miss both the property tax collection target and the revised budget target.
The Municipal Corporation issued invoices to merely 4.70 lakh that amount to Rs. 413 crore in the recently concluded fiscal year. The assessment and collection department had been asking the residents since 1st March to pay property tax to meet the revised target.
In March 2018-18 the property tax collection was Rs. 35 crore while it was Rs. 56 crore in the same month of the earlier fiscal year.
The officials said that many citizens paid their property tax on 31st March, when NMC managed to collect Rs3.25 crore. However, this was expected as maximum number of taxpayers pay dues in the last month of the financial year.
The officials further said that said that the election duty was one of the reasons for poor tax recovery as most of the officials at the Nagpur Municipal Corporation are busy in the election duty.
In 2017-18, the Nagpur Municipal Corporation generated revenue of Rs8.02 crore. The civic body generated only Rs 9.08 crore out of the targeted Rs12 crore.
The Nagpur Municipal Corporation is yet to calculate the revenue generated from other sources such as water works department and town planning department etc.
Abhijit Bangar, Municipal Commissioner sensed poor revenue generation and also decided to slash the expenditure of civic body by 30% from January this year.
Virendra Kukreja, former standing committee chairman blamed the attitude of NMC officials and employees for the poor revenue collection. He also said that the revenue collection could have improved significantly in case the officials have been serious about their job.