Coimbatore: The Coimbatore corporation coffers that has gone dry is unlikely to see a spike in collections any time soon, given the projected income presented in this financial year's (2016-17) budget.
Under the'other income' head, one of the key sources of revenue, the corporation has projected a fall in revenue from 41 per cent this year to 28 per cent in the next financial year. Though other forms of revenue like property tax have a positive projection, the civic body will face a severe drawback with the drop in other incomes including rent-collection and lease, building license fees, contractor deposits and income from state and central governments.
One reason for the low 'other income' projection is that the interest on investments is projected to come down from 8.23 crore last year to just 75 lakh this year. The investments realized, which was 87.85 crore in 2015-16 has been projected as 10 crore for the coming year.
The corporation would be facing an uphill task in mopping up revenue as is evident from the budget estimates presented recently. In 2014-15, the income for the Coimbatore Corporation was 474.66 crore. In 2015-16, it rose to 516.86 crore. But in 2016-17, the projected income is only 463.80 crore, lower than the previous two years.
Corporation commissioner, K Vijaya Karthikeyan, said the projected income was low because they have to pay off some loans. "Once, the Central and state government sanctions the funds allocated, we would be in a better position," he said.
Corporation officials stated that apart from this, there were other reasons as well such as fall in the real estate business. "Under the 'other income' head, a major portion comes from building license fees. Since not many apartments were constructed and the number of building approvals have come down, there would be reduction in the income," said Ravikumar, assistant commissioner, revenue department.
P R Natarajan, former member of Parliament and state committee member of CPM said that generally the corporation would show a deficit budget to ensure they get more funding.
"But the problem is that they have not received any funds from the Central or state governments. They have been using their general funds and also several deposits to ensure that works are carried out which has led to the deficit. Also, the budget has been prepared keeping the elections in mind," he said.
Under the'other income' head, one of the key sources of revenue, the corporation has projected a fall in revenue from 41 per cent this year to 28 per cent in the next financial year. Though other forms of revenue like property tax have a positive projection, the civic body will face a severe drawback with the drop in other incomes including rent-collection and lease, building license fees, contractor deposits and income from state and central governments.
One reason for the low 'other income' projection is that the interest on investments is projected to come down from 8.23 crore last year to just 75 lakh this year. The investments realized, which was 87.85 crore in 2015-16 has been projected as 10 crore for the coming year.
The corporation would be facing an uphill task in mopping up revenue as is evident from the budget estimates presented recently. In 2014-15, the income for the Coimbatore Corporation was 474.66 crore. In 2015-16, it rose to 516.86 crore. But in 2016-17, the projected income is only 463.80 crore, lower than the previous two years.
Corporation commissioner, K Vijaya Karthikeyan, said the projected income was low because they have to pay off some loans. "Once, the Central and state government sanctions the funds allocated, we would be in a better position," he said.
Corporation officials stated that apart from this, there were other reasons as well such as fall in the real estate business. "Under the 'other income' head, a major portion comes from building license fees. Since not many apartments were constructed and the number of building approvals have come down, there would be reduction in the income," said Ravikumar, assistant commissioner, revenue department.
P R Natarajan, former member of Parliament and state committee member of CPM said that generally the corporation would show a deficit budget to ensure they get more funding.
"But the problem is that they have not received any funds from the Central or state governments. They have been using their general funds and also several deposits to ensure that works are carried out which has led to the deficit. Also, the budget has been prepared keeping the elections in mind," he said.