Funds woes plague Berhampur Municipal Corporation

The Berhampur Municipal Corporation, which is facing financial crisis, is desperate to mop up revenue. “The corporation has plunged into a deep financial crisis and the situation is precarious,” said civic body commissioner Ajit Kumar Mishra. “Collection of holding tax, parking fee and trade licence, which are the major source of income for the civic body, is not encouraging. We have fixed a target and asked the field staff to collect Rs 2 crore revenue within one month. We have also decided to take stringent action against the revenue field staff who are not serious about fulfilling the target,” said Mishra.

The civic body has also launched raids on several shops to ascertain whether they have trade licences. More than 100 businessmen, including silk sari shop and cloth merchant in Bada Bazar, were running their establishments without trade licence. The corporation has collected Rs 1.25 lakh as fine from them. “There are around 7,500 registered trade licence holders in Berhampur and the target of revenue collection is Rs 3.24-crore per annum. But the number of trade licences must be more than 25,000 in the city. Those running their business without a licence should come forward,” said Mishra. The corporation collected Rs 16 lakh only out of a target of Rs 3.24-crore per annum. Similarly, there are 60,000 holdings in the corporation limits. “The target of collection of holding tax is Rs 3.66 crore per annum, but the collection is Rs 1.25-crore now and there is a short fall of Rs 2.40 crore. Though many news houses have come up, the civic body is totally in dark about the development. Most people are approaching the Berhampur Development Authority for the approval of their houses and they come to us only when they face difficulties of civic amenities,” said Mishra.

As such, holding tax has been assessed in 35 per cent cases. A huge due from the government sector is also alarming. “The amount of arrears from the government sector is Rs 1.4 crore. We have collected Rs 16,374 only from the government establishments. We have a target to collect Rs 1.29 crore from the kiosks and cabins, but have collected only Rs 4.27 lakh,” he said. He added that revenue collection from kalyan mandaps (marriage venues), guesthouses, town hall and slaughterhouses was meager. Revenue from hoardings, which is a major source of revenue, is lagging behind. “We have a target of collection of Rs 60 lakh. But the collection is only Rs 83,320,” said the commissioner. “We need another Rs 1.60 crore per month to run the corporation. Otherwise it will be difficult for us to manage the establishment,” said Mishra.

Source: The Telegraph