Pune Municipal corporation in financial trouble

NP NEWS NETWORK
PUNE

Goods and Service Tax (GST) has replaced the Local Body Tax (LBT). The central government’s decision to turn country into a single tax system nation has benefited as well as troubled many states.

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Maharashtra is one of them. LBT was generating 34% of tax revenue for the municipal corporation.

Thus, Income Tax and Construction Development Fees were the only two major sources of income remained for the corporation, but from last 3 years there is a recession in the Construction market and income tax revenue has also decreased.

To add to the trouble of corporation some percent of the construction fee revenue of corporation is demanded by PMRDA MahaMetro. The state government has also decided to keep 50% of the income from premium FSI itself making it more difficult for the corporation.

Apart from this, the Smart City Project has also asked for a 10% share of municipal corporation revenue from Baner-Balewadi area. As a result, there is already a financial crisis in front of the corporation and this will definitely impact the development in the city.

PMRDA wants construction officer

The PMRDA has decided to implement a 23-km long project on PPP from Shivajinagar to Hinjewadi, which will cost Rs 8 thousand 300 crores. Because of the huge requirement of funds, the PMRDA has demanded the construction permission of the 500-meter distance on both sides of the Metro.

Smart City Demands Income Tax

In the smart city scheme of Central Government which is being implemented in Baner-Balewadi-Aundh area. An independent company has been set up and the company gets shareholding from the central, state government and municipal corporation.

MahaMetro wants a part as well

MahaMetro has been established by the state government for the Pune Metro project. Corporation, central government, and state government are the shareholders in it. To raise funds for this project, the government has sanctioned 4 FSI to 500 meters on both sides of the metro road. Still, no decision has been given on the construction.

Governance partner in premium FSI

The concept of premium FSI for the monopoly blunder created by TDR was proposed by the corporation in the development plan. The government gave its approval as well.