BBMP throws up its hands

BANGALORE: After three years of big talk on infrastructure proposals for the city, BBMP now says it has no money. No new major works took off last year and pending works are progressing at a snail's pace.
With BBMP commissioner Siddaiah throwing up his hands and Bangalore in charge minister R Ashoka blaming BBMP, it appears there is no hope for the city.Siddaiah said on Thursday that it will take atleast another two years for some financial stability. All new works will have to wait for government grants.
When contacted, minister Ashoka blamed BBMP's bad budgeting for its financial crisis.
What's the way out? Here's what the men in charge of Bangalore city have to say.
We need help: Siddaiah
A shortfall of over Rs 4,000 crore last year, how do you plan to make it up in the new budget?
The crisis will continue for sometime considering the financial indiscipline in the past. But we have got in some financial discipline this year and hope to bring more funds.
Will it mean more borrowals?
No. We have already borrowed over Rs 3,800 crore in the last three years. A considerable part of our revenue now goes towards repayments.
What is the solution?
We will cut down on unnecessary expenditure and freeze not-so-important works. But it will take us atleast two years to bring in financial stability. Our present revenue reserves will help us meet the loan repayments, salaries, pending bills and maintenance. We will need more grants to take up any new major works.
What about the Rs 1,300 crore special grant expected last year?
It's still under discussion at government level. In the last budget, we had proposed a Rs 1,750 crore grant and had also submitted a detailed proposal to the government before the state budget but finally we got just Rs 350 crore.
What can we hope from Budget 2011-12?
It will be a realistic one. We cannot have wild estimates anymore.
Don't bank on unrealistic hopes: Ashoka
BBMP is in severe financial crunch. Being the minister in charge of Bangalore, what do you have to say?
Looks like there is some crisis. But the exact picture will be clear only after the budget review.
BBMP is looking at the government for help. Is there any hope in sight considering a major part of it was triggered by the increasing thrust on infrastructure?
We are keen but as of now, we have not decided on any new grant. The discussions will happen during this budget period. We will try our best to provide something but it will take time.
Forget new grants, why is the government reluctant to give even the budgeted Rs 1,300 crore special grant to BBMP?
This grant is mentioned only in BBMP budget. There has been no provision for it in the state budget. Neither was there any proper consultation or discussion with the government about this grant before including it in the budget. So, the process will take time.
Why did the government not object to the inclusion of this grant?
Making such estimates are part of every budgeting exercise. Banking on unrealistic hopes like Akrama Sakrama and the uncertain special grant from government was a mistake and bad judgement. This was the main reason for the shortfall in its previous budget.
But how long must the city wait?
We have been doing our best. Such financial problems are common in expanding cities. It's just a matter of time.
Crunch effect
Fund crunch has its bright side too. As part of its cost-cutting agenda, Friday's special office pooja at the palike head office for the city mayor, deputy mayor and chairmen of the eleven standing committees will see a common ritual and limited lunch. "It will be a simple affair jointly funded by all of us. No expenses will be borne by the corporation,'' explained deputy mayor S Harish.