Vijayawada Municipal Corporation approves annual budget for 2019-20

Vijayawada: The Vijayawada Municipal Corporation Council on Tuesday approved the budget for the financial year 2019-20 with the estimated revenue of Rs 1,968.94 crore and estimated expenditure of Rs 1,967.69 crore.

The opening balance in the budget is Rs 118.37 crore and closing balance is estimated at Rs 119.62 crore. The revenue income is estimated at Rs 602.67 crore, capital income is estimated at Rs 1,280.97 crore, income on deposits and advances at Rs 85.28 crore with total expected revenue of Rs 1,968.94 crore.

Expected revenue expenditure is Rs 501.82 crore, capital expenditure is Rs 1,346.96 crore, loans and payments estimated at Rs 33.61 crore, deposits and advances estimated at Rs 85.28 crore with total estimated expenditure of Rs 1,967.68 crore.

Mayor Koneru Sreedhar chaired the council meeting and briefed the details of budget. The Mayor said he was delighted to present the fifth budget in the council since the TDP voted to power in the municipal corporation elections.

He said the standing committee had approved the budget and it was carefully prepared after detailed discussions with all sections of people. He added the budget was prepared keeping in view of all-round development of the city and not to burden people with taxes.

However, the YSRCP and CPM corporators alleged that the budget was made with inflated figures. They alleged the budget was made with keeping in view the elections and there was no match between the real income of VMC and the figures shown in the estimated budget.

The State and the Central government funds and grants will play important role in the development of the city. The VMC again have to face huge burden on payment of salaries. If the State government pays salaries under 010 head, the civic body can save more than Rs 150 crore per year.

The ruling party has been trying vigorously to convince the State government to pay salaries under 010 head. But, the issue has been pending for many years. Mayor Koneru Sreedhar explained the details of income and expenditure in budget. The estimated revenue on property tax for 2019-20 is Rs 152.48 crore. It was Rs 151.48 crore as per the revised estimates for 2018-19.

Service charges in lieu of property tax from Railways are estimated at Rs 51.61 crore. Vacant land tax is estimated at Rs 21 crore, taxes collected in Autonagar is estimated at Rs 1.66 crore, professional tax Rs 35 crore, stamp duty Rs 33 crore, building permit fee, building material charge and additional building fee is Rs 30 crore, building regularisation fee is estimated at Rs 20.75 crore, advertisement tax Rs 16 crore, compounding fee Rs 2 crore, 14 per cent open space cost is Rs 20 crore, sale of land to VMC employees Rs 4 crore, rent from markets, shopping/office buildings, canteens is estimated at Rs 18 crore, shops goodwill Rs 8 crore, leasing of parking places Rs 2.25 crore, library cess Rs 9.14 crore, transfer duty Rs 33 crore and sewerage charges tariff Rs 20 lakh.

Capital income of Rs 20 crore is expected from Swatch Bharat grant. Capital income from Government of Andhra Pradesh grant is estimated at Rs 140.06 crore, beneficiary contribution and beneficiary loan is estimated at Rs 49.29 crore, SC/ST under special development funds is Rs 103 crore, 14th Finance Commission grants Rs 75 crore, State Finance Commission grants Rs 5 crore, AMRUT Scheme grants are estimated at Rs 59.86 crore, Budameru development grant Rs 5 crore.

Similarly, the VMC has presented the estimates of revenue and capital expenditure in the budget. Staff salaries to VMC employees is estimated at Rs 171.89 crore, contract labour wages are estimated at Rs 25.37 crore, medical reimbursement bills at Rs 1.25 crore, pensions at Rs 43 crore, gratuity arrears Rs 16 crore, Dearness allowance expenses Rs 20.18 crore, wages to CMEY and self-help groups Rs 48.90 crore, maintenance of roads, pavements at Rs 3 crore, engineering works are estimated at Rs 15 crore, water supply, streetlighting, electricity consumption charges Rs 24 crore, maintenance of street lights Rs 9 crore, repairs to vehicles and dumper bins Rs 3.15 crore, expenditure on advertisement and publicity Rs 3.50 crore, capital expenditure of Rs 103 crore is estimated with SC/ST development funds, drinking water supply to Jakkampudi and Gangireddula Dibba is estimated at Rs10.44 crore, road-under-rail bridges expenditure is estimated at Rs 321 crore.

Improvement on water facilities in East constituency is estimated at Rs 30 crore, construction of Shadi khana in Wynchpet at Rs 1.06 crore, canal beautification works at Rs 5 crore. The YSRCP and CPM corporators have protested in the council alleging the ruling party had shown inflated figures in the budget.