Lokmat News Network
Chhatrapati Sambhajinagar: The financial situation of the municipal corporation has once again reached a critical point. Payments for development works carried out by contractors are pending, and the dues of retired employees are also overdue. There is no money to contribute the municipal share to various government schemes. Due to the financial crisis, this year, even the salaries of 3,000 contractual employees were not paid during Diwali. Given the current financial situation, it seems impossible for the administration to pull the municipal corporation out of this economic crisis in the near future.
Since 2020, the Administrator in the Municipal Corporation has been focussing on essential tasks and small to medium development works. The backbone of the Municipal Corporation's economy consists of property tax, water tax, the Town Planning section, and the Estate section. Although several development projects in the current fiscal year's budget have been put on hold, a significant number of works have still been completed. Now, the bills for these works are being filed in large numbers with the Accounts section.
The bills for the development work carried out by contractors are pending up to Rs 200 crore. The Pensioners' Annuity (PA) payments to retired employees are made promptly, but there are delays in clearing other dues. A total of Rs 70 crore remains to be paid to retired employees. Besides, Rs 36 crore are pending for land acquisition, the water bill for Jayakwadi, and government dues, which together amount to Rs 50 crore that the municipal corporation must pay. In total, there is an outstanding debt of Rs 356 crore. This outstanding amount continues to grow day by day. To prevent further financial burden on the treasury, the administration has put a hold on several development projects in some wards by imposing different conditions.
Loan instalments and CSMC's contribution
Work has begun to strengthen the city's drainage network, and the municipal corporation will need to contribute Rs 360 crore for this drainage project. Planning for this has been underway for the past six months. For the new water supply scheme, the municipal corporation will need to take a loan of Rs 822 crore, with monthly instalments ranging from Rs 18 to Rs 20 crore. Given the current financial situation, it seems unlikely that the municipal corporation will be able to pay these monthly instalments.