BMC budget may rise only 10 per cent

Revenues have been hit hard by slump in international oil prices

As municipal revenues are hit hard by the slump in international oil prices, the annual budget for the Brihanmumbai Municipal Corporation (BMC) will not see much of an increase next year. An increase of barely 10 per cent is expected in the civic budget, which will take its outlay to just over '37,000 crore.

According to civic officials, due to sliding prices of crude oil in international market, the BMC octroi collections, which are the main source of municipal revenues, are likely to fall well short of its annual target. Next year too, the oil prices are likely to remain low.

In this backdrop, civic chief Ajoy Mehta, who will be presenting his first BMC budget for the year 2016-17 on Wednesday, is likely to resort to cost-cutting measures. While he is likely to continue the ongoing projects, no new major project is on the cards. However, the fact that the BMC faces an election next year will tie the commissioner’s hands on imposing any new taxes on Mumbaikars.

The total budget outlay for the year 2015-16 was '33,514.15 crore, which was an increase of 27 per cent over the previous year’s budget. However, there will be not more than 10 per cent increase in the budget next year.

As a part of cost-cutting measures, next year’s budget may witness a drop in the department-wise funds allocation for roads and storm water drains. Last year the BMC had allocated '3,207.76 crore towards the roads and traffic department, while '1,105 crore was provided for storm water drains.

“However, as these two departments have seen major scams, the BMC is likely to reduce the allocation of funds towards them,” said a civic official on the condition of anonymity..