Civic budget may fall short in its revenue collection

THANE: For the second year in a row, the city corporation may have to dig deep into its pocket to make up for a likely shortfall in its re venue collection this year. The civic budget will be presented next month and is likely to fall short of estimated collections from three major sources, including property tax, local body tax and development charges.Others such as road digging fee, fire tax, water charges, advertising revenue and collection from permissions, too, are likely to be on the lower side, officials involved in the budget making exercise said.
According to officials, the overall revenue shortage may be in the range of Rs 150 cr or more. If that happens, the Thane Municipal Corporation (TMC) commissioner will have to seek revised approval from the standing committee and the general body (GB) later after formally presenting the budget 2014.
"This has just been a generally low year for Indian economy and a growing city like Thane is sure to feel some pinch," said a civic official.
The collections from LBT are likely to fall short, officials said, as this year the TMC will be able to take into account collections from just 11 months from the financial year. The collections from town planning have shown clear signs of a dip because of a sluggish property market in general. The property tax collection system is still evolving and a work in progress.
"We have to ensure people are able to pay property taxes online, few disputes arise within the housing societies and data and history of illegal buildings recorded for better collections in future. Until that happens, the collection from property tax will not reach its full potential," said a senior official.