Thiruvananthapuram

With no compensation coming from the centre this year for entertainment tax forgone, and tax collection only slowly picking up, the city Corporation has been digging deep into its own fund reserves to fund all its interventions to fight the COVID-19 pandemic.

During this period of low revenues, the civic body has been forced to spend much more than it does during the usual times, for everything from the running of community kitchens to setting up institutional quarantine centres and COVID first-line treatment centres (FLTC) and disinfection activities in public places and institutions.

“We have been sitting somewhat safe because of the somewhat substantial own funds in reserve. During this period, we have spent almost half of it. In March, a major tax collection drive was supposed to happen, but the pandemic hit during that time. Now, the collection of building tax, professional tax and rents from our buildings as well as license fee are slowly picking up, as businesses have started running. The last time we got GST compensation for entertainment tax forgone was in 2018-19. We will get the GST for the various works done only after the contractors submit the bills,” said Deputy Mayor Rakhi Ravikumar.

The financial crunch is evident in the fact that the Corporation has been requesting for contributions from the public for providing food kits to the families in the coastal regions, which were hit by COVID-19 as well as the pandemic-induced lockdown and ban on fishing.

The running of institutional quarantine centres and FLTCs impose major strain on the local body’s finances, as it includes the cost of various materials provided, supply of food three times a day to all the residents and cleaning activities. In the initial days of the pandemic, the Corporation had also provided food packets free of cost to several residents, who had called up the community kitchens.

With the theatre owners and others demanding a cut in GST once cinema theatres start functioning, it remains to be seen how much longer the Corporation will have to wait for adequate GST compensation, which would allow it to breathe free.