MCGM issues proposals to boost their income via increasing fees

The Municipal Corporation of Greater Mumbai (MCGM) has proposed to undertake several projects to increase their falling revenues through traditional channels. They have suggested increasing and levying fees on garbage and sewage disposal services. These proposals have been mentioned in the MCGM's Budget for the FY20-21.  

The budget allotted to MCGM this year is Rs 33,441 crore. When compared with last year’s Rs 30,692 crore, this indicates an increase of 8.95 per cent. The Municipal Commissioner also asserted that they don’t plan to increase the stress on property tax. 

Municipal Commissioner on MCGM’s proposal 

The Municipal Commissioner of the country's richest civic body Praveen Pardeshi said that the MCGM would levy fees on garbage collection and sewage "without increasing the current total property tax burden" on city residents. As per MCGM, this move will boost their income. The MCGM had collected Rs 911 crore last year for the charges on water-sewage facilities. This year, under the ''garbage, sewage, and water fees'' head, it hopes to collect Rs 1,535 crore. 

Read: BMC unveils Rs 33,441 cr budget for 2020-21;no change in taxes

MCGM to issue notices and disconnect the water supply 

The MCGM in its proposal also mentioned that they will be issuing notices and disconnecting water connections over the failure to pay the outstanding dues. The MCGM has already exercised these measures and attached 1,237 such properties in the past one year which led to an 84 per cent rise in recovery.

Compared to the 2019-2020 Budget estimates of property tax collection of Rs 5,016 crore, the civic body netted Rs 1,810 crore only. In the next fiscal, it expects to collect Rs 6,768 crore. 

Read: Aarey forest: Bombay High Court seeks answers from MMRDA and MCGM

Other measures to be adopted by MCGM to increase income 

Other avenues that the MCGM is exploring to boost their income include regularisation of unauthorised flower beds, decks, lofts, etc, which are not part of the floor space index in residential and commercial premises. The MCGM proposes to levy a compounding fee of 15 per cent of ReadyReckoner value of unauthorised use of the FSI which will bring in additional revenue of Rs 600 crore. They are also planning to increase the charges/fees which have remained the same for 10-15 years. Services like birth certificates, trade and market licences and others will be hiked by 5 per cent annually. 

Read: Aaditya Thackeray praises BMC after water pipeline fixed on JVLR

Not only this, the MCGM also plans to decrease the salaries of employees, which according to reports, eats up around 50 per cent of its resources. The acceptable limit set by the MCGM, on the other hand, is only 35 per cent. There is also an additional burden of Rs 1,300 crore due to the VIIth Pay Commission recommendations' implementation for the civic body staff. 

Read: CM Uddhav Thackeray and Aaditya headline BMC groundbreaking ceremony; Congress-NCP absent