Mumbai: The New Year may not start on a positive note for development projects in the city. The recession has now started burning a hole in the Brihanmumbai Municipal Corporations (BMC) pocket.

According to a confidential note circulated by the accounts department of the BMC, revenue collections have shown a decline in last two months. A senior civic official said that the "considerable" dip will affect funding and pace of development projects in the city. "The corporation has no option but to order a slow down in projects," he said.

Municipal commissioner Jairaj Phatak had, in his budget speech, projected that income from revenue sources will be Rs10,399.89 crore. However, an official attached with the accounts department said BMC will fall way short of the mark. "At present, we are running short of the projected income by over 12%," he said. Apart from affecting pace of development projects, the revenue downslide will also affect budget calculations for the coming year. The budget is to be tabled on February 5.

The levy on imports in the city has been below par for the last three months. "There has been a substantial decline in imports," confirmed joint assessor and collector NA Pathan. Collection statistics prove Pathans concern. The octroi collected in December so far (Rs209.3 cr) this year is 12.93% below the collection around the same time last year (Rs240.38 cr).

The BMC had projected Rs4,625 crore revenue by way of octroi levy this year, but so far only Rs3,353 crore has been collected. "We have decided to plug all gaps. But meeting the estimate will prove difficult if the trend continues," admitted Pathan. Octroi is BMCs largest revenue earner. Another major contributor, receipts from the development plan (DP) department, have also reported a negative trend. The DP department levies development charges on developers and land owners taking up construction projects. A senior official said this was due to slowdown in the construction industry. Even income received from licensing of shops may be impacted, an official said.
Source : Central