Nagpur: The Nagpur Municipal Corporation (NMC) has fallen short by Rs 248.2 crore in achieving its revised target for the 2022-2023 budget. The NMC generated only Rs 2,668.54 crore out of the revised target of Rs 2,916.74 crore. The shortfall highlights the challenges faced by the NMC in generating revenue from its own sources. The civic body heavily relies on grants from the State and Central Governments, including GST, which accounted for a significant portion of its total receipts.
According to a report in a local English daily, the Municipal Commissioner and NMC Administrator, Radhakrishnan B, had revised the budget estimates for the 2022-2023 financial year. Initially, a budget of Rs 2,684.69 crore was proposed, but it was revised upwards to Rs 2,916.74 crore, taking into account the NMC’s own sources of revenue. However, the NMC could only realize Rs 2,668.54 crore, falling short of the revised target.
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Thursday 13 March 2025
In the current financial year, a draft budget of Rs 3,336.84 crore was presented for 2023-2024, with a surplus of Rs 69.21 crore after considering an estimated expenditure of Rs 3,267.63 crore.
The report further said that a closer analysis of the NMC’s statement of accounts reveals that the property tax, which is the main source of revenue for the NMC, fell short of the Rs 300 crore target, with only Rs 234.23 crore realized. Revenue from the Water Works Department amounted to Rs 199.92 crore, while the Advertisement Department generated Rs 10.38 crore, and the Town Planning Department contributed Rs 33.30 crore. Additionally, the NMC received Rs 52.28 crore as development charges.
Civic activists have pointed out that not only were the budget estimates inflated in the past, leading to a revenue deficit, but the administration also failed to set realistic budget targets. They argue that the NMC has not taken sufficient initiatives to improve its financial condition, and the exaggerated revenue targets ultimately affect the residents of Nagpur, numbering around 30 lakhs.
Experts emphasize the urgent need for the NMC to intensify efforts to improve its financial condition, considering the increasing expenditure on establishment and development works. Despite the city’s geographic and population expansion, experts note that the NMC has neglected its three main sources of revenue: property tax, water fees, and advertising fees. Revenue from these areas has remained stagnant, and there has been a lack of effort in recovering dues from defaulters, leading to mounting arrears.
The Nagpur Municipal Corporation’s budget shortfall and revenue challenges pose significant hurdles in meeting the financial needs of the city. The NMC must prioritize efforts to enhance its revenue generation from internal sources, such as property tax, water fees, and advertising fees. Moreover, effective measures should be implemented to recover arrears from defaulters. These actions are crucial to improving the NMC’s financial condition and meeting the demands of the expanding city while providing essential services to its residents.
