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Janaagraha
BBMP Budget Brief 2015-16
18th March, 2015
BBMP Budget 2015-16 Highlights
• The financial situation of BBMP was acknowledged to be “tight and tough” and the budget presented was
characterized as a Realistic Budget.
• The major focus of this year’s budget will be to see through ongoing and spilled over works and to cut down on
administrative overheads.
• Total grants of Rs. 2,891 Cr are expected from the State Government. The 2014-15 Budget Estimate for State
Grants was Rs. 2,626 Cr revised down to Rs 1,019 Cr.
• A strong emphasis on boosting revenue receipts from Property Tax, Service Tax on Central and State Government
properties, Rent from BBMP Markets, OFC Rent, SWM Cess and Trade Licenses
• Significant outlays adding up to Rs. 247 Cr. on environment-related works such as development and maintenance of
Parks and Lakes as well as Afforestation and Rainwater Harvesting. Additionally, Rs. 415 Cr towards Solid Waste
Management including investments in innovative technologies.
2
BBMP’s Budgeting process needs a major overhaul
•
The BBMP Budget 2015-16 estimates Rs. 6,730 Cr of outlays for Bangalore.
•
Actual Receipts have been consistently overestimated by over 100% in each of the last 5 years
•
Total Receipts have declined consecutively for last 4 years; decline of 25% since 2011-12 resulting in significantly poor outlays
Receipts
Budget
8,447
9,316
Payments
Actuals/RE
Budget
9,730
8,445
8,861
5,978
3,320
2010-11
4,003
2011-12
3,830
2012-13
Source: BBMP Budget 2015-16; Amounts in Rs Cr
For 2014-15, Revised Estimates have been used
3,093
2013-14
9,920
8,498
6,730
6,025
3,626
2,894
2014-15
9,399
Actuals/RE
2015-16
2010-11
3,840
2011-12
6,730
4,358
3,343
2012-13
2013-14
2,927
2014-15
2015-16
3
BBMP is Broke
•
Outstanding loans of over Rs 3,000 crores with pending bills of over Rs 2,500 Cr far is roughly twice the size of total annual receipts
4,000
3,650
3,500
3,000
3,254
3,742
800
3,675
3,425
2,916
700
600
2,500
500
2,000
400
1,500
300
1,000
200
500
100
-
Estimated Debt Stock
Total Repayments
Actual 2010- Actual 2011- Actual 2012- Actual 2013- RE 2014-15 Budget 201511
12
13
14
16
Source: Medium Term Fiscal Plan (MTFP) and Annual Budget documents of BBMP. Debt stock not disclosed by BBMP therefore derived based on MTFP and internal estimates.
BBMP needs to raise its own resources
•
Own Revenues have never crossed the Rs. 2,000 Cr mark, creating heavy dependence on State and Central Grants
BBMP Revenue Receipts
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
Actual 2011-12
Actual 2012-13
Property Tax
Source: BBMP Budget 2015-16
For 2014-15, Revised Estimates have been used
Actual 2013-14
Other Sources
RE 2014-15
Budget 2015-16
Grants and Loans
5
Bangalore is getting a raw deal on funds for infra and services
•
The total budget 2015-16 comprises Rs. 2,243 Cr Revenue Expenditure and Rs. 4,486 Cr Capital Expenditure
•
Of the total Rev Expenditure, Rs. 534 Cr will go towards Salaries and a further Rs. 717 Cr on other administrative expenses, Rs. 100 Cr
will go towards Interest on Loans, leaving only Rs. 893 Cr for Works-related expenditure
•
Given total actual receipts are likely to be in the region of Rs 3,000 Cr, total expenditure on infra and citizen services is likely to be only
Rs 1,500 Cr
Capital Expenditure
Interest on Loans
Other Overheads
Works-related RE
Salaries
13%
CE- 67%
RE - 33%
8%
11%
1%
Source: BBMP Budget 2015-16
For 2014-15, Revised Estimates have been used
6
Thank you
Watch out for Janaagraha’s more detailed Ward-level analysis of the
BBMP 2015-16 Budget on our website www.janaagraha.org
[email protected]
M: +91 9972455166