MOHALI: With no new taxes and no fresh projects, the Mohali municipal corporation (MC) has approved Rs 268 crore surplus budget for 2020-21 fiscal. The budget has been approved by the house in its last meeting. The house is likely to be dissolved by April this year.
The MC has been passing deficit budget from the past 4 years, but in its last stint they have come up with Rs 17 crore surplus budget. This time it has approved a surplus budget of Rs 17 crore. The MC has included Rs 100 crore in its income to be taken from Gmada for park maintenance in Rs 286.72 crore surplus budget. The MC has shown Rs 251.66 crore expenditure in its budget.
Mayor Kulwant Singh said, "We have passed Rs 286.72 crore income against Rs 251.66 crore expenditure with Rs 17.06 crore as surplus budget. We have included Rs 100 crore which is to be recovered from Gmada for maintenance of various parks."
In 2019-20, the MC had proposed Rs 22.2 crore deficit budget and in 2018, the MC passed Rs 128 crore annual budget showing Rs 15 crore deficit for 2018-19 fiscal. The house passed Rs 128.17 crore expenditure against the income of Rs 112.93 crore for the fiscal.
However, in 2018-19 fiscal, the MC later managed to reduce the deficit to half by increasing the income to Rs 117.02 crore and reduce expenditure to Rs 124.87 crore from the proposed Rs 128.17 crore, decreasing the deficit to Rs 7.85 crore from the proposed Rs 15 crore.
In 2017, the MC had passed annual budget with estimated expenditure of Rs 138.50 crore against projected income of Rs 117.50 crore for 2017-18 fiscal making it a deficit of Rs 21 crore.
MC commissioner Kamal Kumar Garg said, "We will be focusing on increasing the collection from various factors like building application fee, licence fee, and tehbazari. We will work on this as it can give us a boost of around Rs 10 crore during the financial year." The MC is expected to get Rs 100 crore from Gmada, Rs 66 crore from the Punjab municipal funds, Rs 28 crore from property tax which is the major income factors in Rs 286.72 crore surplus budget.
The primary source of income of the MC is the property and for the financial year 2020-21 it has been increased by Rs 3 crore at estimated collection of Rs 28 crore which during the 2019-20 fiscal was decreased by Rs 2.5 crore at Rs 25 crore.
In 2018-19, the property tax income was estimated at Rs 19 crore but was revised to Rs 27.5 crore with a hike of Rs 2 crore from the previous budget of 2017-18 estimated at Rs 17 crore.
Similarly, the additional excise duty has been decreased to Rs 3 crore from Rs 8 crore in 2019-20, rent and tehbazari fee income worth Rs 60 lakh, advertisement tax revenue of around Rs 12 crore, water supply and sewerage income generation has not been revised and proposed similar to last fiscal of Rs 1.30 crore, building application fee has been proposed at Rs 70 lakh, Rs 40 lakh surplus as compared to last fiscal of Rs 30 lakh and licence fee income of Rs 40 lakh generated during the last fiscal is now proposed at Rs 45 lakh.
The MC has been passing deficit budget from the past 4 years, but in its last stint they have come up with Rs 17 crore surplus budget. This time it has approved a surplus budget of Rs 17 crore. The MC has included Rs 100 crore in its income to be taken from Gmada for park maintenance in Rs 286.72 crore surplus budget. The MC has shown Rs 251.66 crore expenditure in its budget.
Mayor Kulwant Singh said, "We have passed Rs 286.72 crore income against Rs 251.66 crore expenditure with Rs 17.06 crore as surplus budget. We have included Rs 100 crore which is to be recovered from Gmada for maintenance of various parks."
In 2019-20, the MC had proposed Rs 22.2 crore deficit budget and in 2018, the MC passed Rs 128 crore annual budget showing Rs 15 crore deficit for 2018-19 fiscal. The house passed Rs 128.17 crore expenditure against the income of Rs 112.93 crore for the fiscal.
However, in 2018-19 fiscal, the MC later managed to reduce the deficit to half by increasing the income to Rs 117.02 crore and reduce expenditure to Rs 124.87 crore from the proposed Rs 128.17 crore, decreasing the deficit to Rs 7.85 crore from the proposed Rs 15 crore.
In 2017, the MC had passed annual budget with estimated expenditure of Rs 138.50 crore against projected income of Rs 117.50 crore for 2017-18 fiscal making it a deficit of Rs 21 crore.
MC commissioner Kamal Kumar Garg said, "We will be focusing on increasing the collection from various factors like building application fee, licence fee, and tehbazari. We will work on this as it can give us a boost of around Rs 10 crore during the financial year." The MC is expected to get Rs 100 crore from Gmada, Rs 66 crore from the Punjab municipal funds, Rs 28 crore from property tax which is the major income factors in Rs 286.72 crore surplus budget.
The primary source of income of the MC is the property and for the financial year 2020-21 it has been increased by Rs 3 crore at estimated collection of Rs 28 crore which during the 2019-20 fiscal was decreased by Rs 2.5 crore at Rs 25 crore.
In 2018-19, the property tax income was estimated at Rs 19 crore but was revised to Rs 27.5 crore with a hike of Rs 2 crore from the previous budget of 2017-18 estimated at Rs 17 crore.
Similarly, the additional excise duty has been decreased to Rs 3 crore from Rs 8 crore in 2019-20, rent and tehbazari fee income worth Rs 60 lakh, advertisement tax revenue of around Rs 12 crore, water supply and sewerage income generation has not been revised and proposed similar to last fiscal of Rs 1.30 crore, building application fee has been proposed at Rs 70 lakh, Rs 40 lakh surplus as compared to last fiscal of Rs 30 lakh and licence fee income of Rs 40 lakh generated during the last fiscal is now proposed at Rs 45 lakh.
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