Janagraha releases BBMP Budget 2017-18 performance report

Source: BBMP Budget books

KEY HIGHLIGHTS

  • 66% of budgeted property tax of INR 2,600 crores collected in H1. Highest in the last five years.

  • INR 1200 crores of Pending Bills cleared. Spends on current year’s works at INR 177 crores.

  • 2422 Tenders for INR 925 crores raised against a residual budgeted spend of INR 5758 crores

SECTION I | Analysis of Expenditure

  1. BBMP has spent INR 2,030 crores (26% of the total planned capex & maintenance on infrastructure), out of which INR 177 crores is towards works budgeted for the current financial year

  • BBMP has allocated INR 7,788 crores towards various works, out of which allocation towards capital works amounts to INR.6,088 crores and allocation towards  maintenance /revenue works  amounts to  INR 1,700 crores.

  • Up to 30 September 2017, INR 2,030 crores has been spent – out of which INR 1,853 crores was towards pending bills and spillover works while only INR 177 crores was towards current works (capital and maintenance).

Table 1 – Budget vs actuals

INR in Crores

BE 17-18

H1 17-18

% spend

Current work

4,482

177

3.9

Pending bills

1,171

1,198

102.3

Spillover work

2,134

655

30.7

Total

7,788

2,030

26.1

             Source: BBMP Budget 17-18, Bills Register April ‘17-Sep’17

  • Table above compares the BBMP budget estimate for 2017-18 with the actual expenditure (based on the bills register) up to September, 2017. Following are the key takeaways

  • Only 26% of the budgeted expenditure has been made in the first 6 months of the current financial year.

  • 91% of the total expenditure in the current period pertains to pending bills and spillover works.

  • Until 30 September 2017, only 3.9% of the budgeted expenditure towards current works was spent.

  • To meet the budget targets, the BBMP has to spend INR 5,758 crores over the next 6 months

  • Historically, budget estimate of pending bills increased from INR 15 crores in 2013-14 to INR 52 crores in 2016-17, indicating rise in backlog of capital/maintenance works bills being cleared. Refer Chart 1 for a year on year comparison of pending bills.

  • For BBMP to focus on works budgeted for the current year, it is essential to address the issue of pending bills year on year

Chart 1: Year on year comparison of pending bills (in INR)

   Source: BBMP Budget 17-18, Bills Register April ‘17-Sep’17

  1. 2,515 Job Codes were raised from 1 April 2017 to 30 September 2017 for INR 1,206 crores; While 3,269 Job Codes amounting to INR 2,409 crores were raised from 1 April 2016 to 30 September 2016

  • Out of INR 1,206 crores of job codes raised in H1FY18, INR 56 crores pertain to works under the Nagarothana Grants.

  • On comparing the job codes raised in H1FY18 to H1FY17, we note that there is a 52% drop in the value of job codes raised during H1FY18, thus indicating that work on job codes created in FY17 could still be in progress. Currently the status of job codes across years is not available.

           Chart 2: Value Job codes raised – H1FY18 vs H1FY17

Value Job codes raised – H1FY18 vs H1FY17

           Source: Bills Register

  • Further, the job codes raised during H1FY18 predominantly pertain to tarring or asphalting existing roads. Chart 3 represents category wise job code count and value.

            Chart 3 – Top 5 categories of Job codes raised in H1FY18

Top 5 categories of Job codes raised in H1FY18. Source: Bills Register April ‘17-Sep’17
  1. For the Rs 5,758 crores of budgeted expenditure yet to be spent over the next six months, tenders have been raised for 13% of the amounts during H1FY18

  • 2,422 tenders amounting to Rs 925 crores were raised during H1FY18, out of which, 1,760 tenders amounting to INR 755 crores are towards job codes of the current year. This is against a residual budgeted spend of INR 5,758 crores for H2FY18.

  • A majority of tenders raised were towards road repair work. Chart 4 represents a break-up of top 5 categories under which tenders have been raised.

        Chart 4 : Details of tenders raised in H1FY18

Details of tenders raised in H1FY18. Source: BBMP Budget books

SECTION II |Analysis of Income

  1. BBMP’s Annual budget for 2017-18 is INR 9, 243 crores, of which own revenues constitute Rs 4,252 crores, which makes up 46 % of total income.  Own revenue constitutes of property tax, service charges, advertisement taxes and others. Property tax is the principal source of own revenue.                                                  

Source: BBMP Budget books
  1. Collections of property tax is high in the first quarter of every financial year. Property tax collected during Q2FY18 is INR 1,723 crores (up to 11th October 2017). Highest in last 5 years

Chart 7 – Trend in property tax budgeted and collected over the past 5 years

Trend in property tax budgeted and collected over the past 5 years. Source: BBMP Budget books
  • Property tax collected up Q2FY18 is INR 1723 crores, 66% of the budgeted amount, out of which INR 1425 crores was collected in Q1FY18.

  • The collections trends show that the annual tax collected is ~75% of the budgeted property tax in the last 2 years

2. 17% of budgeted Grants amounting to INR.729 Crores was received during H1FY18

Table 2- Grants in FY18 – Budget vs Actuals

Grants

INR. in crores

BBMP Budget

Grants received in Q1FY18

Special Infrastructure Projects (SIP)

2,031

GOK Grants – Special Grants to BBMP from State Govt./Nagarothana

1,000

250

SFC Tied Grants Salary

293

147

SFC Untied Grants

286

72

SFC Tied Electrical Fee & maintenance

231

116

Lakes Development Grants

50

13

GoK Grants total – A

3,891

596

GOI Grants – 14th Finance Commission.

265

133

National Urban Health Mission Grants

73

GOI Grants – Swachha Bharath Abhiyana

10

GOI Grants – Amrut Project Development of Parks

10

GoI Grants total – B

358

133

Total Grants – A+B

4,250

729

Source: BBMP Budget books

  • Grants are given by Centre and the State government to the BBMP. State Finance Grants are for revenue purposes, i.e., for recurring expenditure purposes. Only these grants have been received during the first quarter on a pro-rata basis and no other grants.

  • There is an increase of ~ INR 1,000 crores in the budgeted State grants as compared to the previous year.

Table 3- Grants over the years

Particulars

Actuals

Actuals

Actuals

RE

BE

2013-14

2014-15

2015-16

2016-17

2017-18

Nagarothana Grants

461

611

1,000

1,000

1,000

SFC Grants

370

529

521

786

810

Other state grants

0

306

426

1,129

2,081

Other grants

4

              –   

                  –   

           –   

0

GoK grants (A)

835

1,446

1,947

2,915

3,892

13th FC grants

                   –   

              –   

                  –   

           –   

            –   

14th FC grants

65

115

287

310

265

Other GOI grants

2

0

2

42

83

AMRUT

                   –   

              –   

                  –   

10

10

GoI grants (B)

67

116

288

362

358

Total (A+B)

902

1,561

2,235

3,277

4,250

Source: BBMP Budget books

About Mahalakshmi Balasubramanian 1 Article

Mahalakshmi Balasubramanian works with Janagraha, a Bengaluru-based NGO

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