GHMC struggles to pay workers as virus pandemic hits the city

Hyderabad: The Covid-19 crisis has hit Greater Hyderabad Municipal Corporation (GHMC) very badly, particularly in monetary terms.

Officials claimed that deployment of tax inspectors to the corona special teams has adversely impacted their current month property tax collection. Till now the corporation has only collected `67.56 crore and were falling short by about `400 crore to reach the current year's annual property tax target of `1,800 crore.

As against the monthly requirement of Rs 110 crore towards salaries, the corporation, presently, has a mere Rs 60 crore in its kitty, according to sources. They claimed that the state government would not be held responsible as payment of salaries to its employees has to be from the GHMC’s own treasury.

According to highly placed sources, even as the corporation is falling short by Rs 50 crore pertaining to salaries, things might worsen if the lockdown continues for the first two weeks of April. This will have a direct bearing on regular maintenance activities like sanitation and also take a toll on the Early Bird Rebate Scheme.

That apart, sources said that the corporation is yet to clear bills to the tune of Rs 550 crore pertaining to infrastructure projects and others since January. Prior to the lockdown, the corporation has cleared pending December bills worth `148 crore, with the state government releasing Rs 78 crore from its budget.

A senior GHMC official, on condition of anonymity, told Deccan Chronicle that Covid-19 crisis has already hit revenues very badly. He said though instructions were given to the bill collectors to achieve the current financial year property tax target, coronavirus containment is the top priority of the government.

“If the crisis continues for three months, the corporation would be bankrupt, thereby affecting all basic civic amenities. If Rs 50 crore is not collected within a week, salaries of employees may not be credited,” the official said.