BBMP faces budget reduction from Rs 11,885 cr to Rs 9,537 cr, impacting projects

NT Correspondent

Bengaluru: The Bruhat Bengaluru Mahanagara Palike (BBMP) is contending with a substantial cut in its budget, as the previous year's Rs 11,885 crore allocation has been reduced to Rs 9,537 crore for the upcoming fiscal year.

This reduction raises apprehensions about the potential halt of various BBMP projects, amounting to Rs 2,350 crore for the financial year 2023-24.

The initial budget of Rs 11,885 crore, presented last year, had anticipated revenue matching this amount.

However, unforeseen circumstances have led to a revenue shortfall, prompting a reduction in the budget size.

The expected revenue from initiatives such as A kata recognition for B kata properties, amendments to the advertisement bylaw, generating revenue from outdoor advertisements, and property tax collection have not materialised as planned.

The BBMP had projected revenue of over Rs 1,000 crore from the A kata recognition initiative, but the process remains incomplete.

Similarly, amendments to the advertisement by law, including the ban on outdoor advertising like flex and banners, were expected to yield around Rs 750 crore in revenue.

However, this initiative is yet to be implemented. Additionally, the targeted property tax collection of over Rs 4,400 crore has fallen short, with only around Rs 3,300 crore collected.

The revenue deficit has prompted the BBMP to revise its budget, and concerns loom over the potential discontinuation of projects totalling Rs 2,350 crore.

BBMP officials have communicated with the state government, requesting additional funds to bridge the deficit.

While nearly Rs 4,000 crore was allocated to BBMP by the state government last year, officials have sought an additional Rs 2,000 crore under the special infrastructure program and Rs 350 crore under the state finance commission.

The BBMP Fiscal Reconciliation and Budget Management Rule-2021, enacted two years ago, aimed to align the BBMP budget with its income and prevent unnecessary announcements.

However, adherence to these rules seems lacking in the preparation of the budgets for the years 2022-23 and 2023-24.

While there is optimism for continued programs with additional funds, concerns persist about the effective implementation of BBMP's initiatives and projects in the overall fiscal landscape.