Hyderabad: As GHMC runs up debts, employees worry for salaries

Hyderabad: The burden of bank debts has been increasing on the Greater Hyderabad Municipal Corporation (GHMC). The administration is facing pressure from banks to pay interest. Even though the civic body is planning to raise more funds through bank loans for new projects, the employees are worried as their monthly salaries may get affected if the corporation takes more loans.

According to the expenditure report for the financial year 2021-2022, Rs 1,178.4 crore has been collected against Rs 1,850 crore so far from various sources of revenue of the corporation. There was a drastic fall in advertising revenue, of only Rs 9.55 crore, as against the previous year's Rs 45 crore. An amount of Rs 165.21 crore was spent on new equipment and machinery, vehicles used by officials. The entire staff of five zonal offices consumed Rs 30 crore worth fuel; Rs 238.47 crore was spent on maintenance of dump yards. A total of Rs 1,593 crore was spent by the GHMC in one year.

While the GHMC aimed to borrow Rs 1,224.51 crore from banks in the current financial year, the administration has already taken Rs 1,593.44 crore, exceeding the limit. It is unable to pay interest. The civic body has spent Rs 1,407 crore on development of roads, construction of flyovers and traffic junctions; Rs 126 crore was spent on development of nalas in the city.

This has already created unbearable pressure on the GHMC. Seeing this as an alarming situation, the corporation employees are a worried lot as they faced difficulties during the Covid lockdown. Several staffers say in coming months they may face delayed salaries. Sources in the civic body said Rs 3,000 crore has been raised for the Strategic Road Development Programme (SRDP). A loan of Rs 1,460 crore is required for the Comprehensive Road Maintenance Programme (CRMP).

The GHMC is paying annual interest of Rs 200 crore on bank loans; it is spending Rs 52 crore on mobile applications and other IT services.