AHMEDABAD: The AMC is in a quandary over the 2021-22 budget. Though the financial condition of the corporation is shaky, it is unlikely that the budget will be increased.
Officials said that if local body elections are held by January-end or in February, the ruling BJP in the state will not want to impose any new taxes in the AMC budget. The officials said that since Covid has hit the AMC’s finances, the corporation may not suggest big-ticket projects for the next financial year. To make up for falling revenues, the AMC had decided to put on hold projects worth Rs 1,200 crore. Also, the officials said that the shortfall in taxes was just 14% and hence it might not severely impact the budget.
The officials said that due to Covid, grants from the central and state governments have been delayed, disrupting the plans for the current year. The officials said that they do not expect much revenue even in the next financial year and hence the budget might cover only those projects that directly affect the people. These may include road resurfacing, drainage, drinking water, and bridge-building works. The officials said that allocations will be stalled for the renovation of community halls and gardens. When asked how the AMC intends to take up these projects, the officials said that the corporation has already got the approval for a Rs 1,200 crore loan from the World Bank.