The Brihanmumbai Municipal Corporation (BMC) has spent just 36.74% of budget estimates on public projects till date this year, and even though it is better than last year’s 31.01% expenditure in the same period, it has drawn criticism from a few quarters.
Departments like Roads and Storm Water Drains have done better on the capital expenditure front — the amount spent on new projects, services and initiatives — while others like Gardens have lagged behind. Municipal Commissioner Ajoy Mehta is confident that by the end of the financial year, the figure will be around 80%.
The BMC slashed its budget for 2017-18 for the first time in its history by ₹11,000 crore. This was done after it found that most budget estimates were bloated and departments would not be able to spend the entire amount at the end of the year, leading to lapses and poor economic precedents.
Mr. Mehta similarly slashed the budget for 2018-19, with a total allocation of ₹27,258 crore. Of this, ₹9,547 crore has been set aside for capital expenditure. By December 31, 2017, the BMC had managed to spend only 31.01% or ₹2,518 crore of its total estimated capital expenditure of ₹8,121 crore till December 2017.
Where it was spent
A closer look at the BMC’s capital expenditure shows that the corporation had set aside ₹1148.44 crore for its Roads and Traffic Department and has spent ₹718.35 crore so far, or 62.55% of estimates. Last year, at this time, the figure stood at ₹554.36 crore or 51.4% However, by the end of the previous financial year, the civic body met its target by actually spending ₹1,092 crore, a bit more than the estimates of ₹1,078 crore.
But it has not performed equally well in the sister department of Bridges, where it has managed to spend only 39.76% of estimates.
Its Storm Water Drains Department, on the other hand, has spent 89.44% of the estimated ₹576 crore so far. This is much better than last year’s 70.9%.
The Garden Department has achieved a mere 16.81% expenditure this year, as compared to last year’s 37.54%. The Solid Waste Management Department, too, has managed to spend only 22.81% so far, similar to last year’s 19.05%. Even the Fire Brigade has not been able to spend its ₹188 crore set aside this year, spending only ₹26.30 crore so far. Of the ₹195 crore allotted to the Fire Brigade in the previous financial year, it ended up spending only ₹63.35 crore by the end of it.
Similarly, of its total health budget of ₹706 crore (including the Health Department, major and peripheral hospitals), it has managed to spend only 34.65%. The figure stood at 41.64% last year.
The BMC has set aside ₹385.64 crore for capital expenditure in primary education this year and has managed to spend only 30.35% of it. Moreover, in its Budget G that comprises all water supply and sewerage-related departments, ₹1,787 crore was set aside in this budget, but only 28.87% has been spent so far. Although it is better than last year’s 21.91%, it is still meagre.
For 2018-19, it has estimated revenue receipts to the tune of ₹23,985 crore and revenue expenditure — the amount spent on establishment costs — of ₹17,723 crore.
‘Poor planning’
The BMC’s expenditure record has invited criticism, with Samajwadi Party leader Rais Shaikh attributing it to poor planning. “Many departments asked for funds but were not able to spend them,” he said. The other reasons are an administration paralysis because of the tussle between the Shiv Sena and Bharatiya Janata Party, and unrealistic projects like the proposed cycle track in the city, Mr. Shaikh said.
Leader of the Opposition Ravi Raja said certain projects like water supply tunnels or reconstruction of hospitals have not taken off for years despite finding repeated mention in the budget. “How is it a realistic budget then?” he asked.
But Mr. Mehta defended the corporation and said a lot of payments, such as ₹800 crore for the coastal road, have come in the form of “bullet” payments. In the case of the Health Department, although the equipment is still coming in, he said “the revamp of three hospitals will take off very soon”.
Two water supply tunnels have also received bullet payments, so the picture will be much better this year, he said. “We have improved our spending due to much better monitoring and planning. We have asked departments to ask for only that which they can spend, without any guess work. They are understanding the concept of budgeting. The next budget will be on the same principles.”