Poor collection of taxes pushes AMC into financial trouble

Aurangabad, July 9:

The Aurangabad Municipal Corporation (AMC) lands into financial trouble as the collection of taxes has been dropped by Rs 70 crores in the last three months.

As per AMC, it was expecting to collect a revenue of Rs 60 cr in the form of property tax from April to June (three months) but could collect only Rs 27 cr. The civic body was also expecting to collect a revenue of Rs 36 cr in the form of water tax but succeeded in collecting Rs 6.50 cr. The drop in tax collection paralysed the functioning of the civic body. The essential works had been affected and restrictions are imposed on daily expenses. It may be noted that the AMC also has to clear an outstanding of Rs 250 cr of the contractors.

The AMC had given many of its properties on a lease basis and it was expecting a revenue of Rs 8 crore in the form of rent, but could garner Rs 50 lakh only. Of the total revenue, 65 percent of it is spent on various tasks, but due to 40 pc collection of the revenue in the last three months has paralysed its functioning.

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Monthly expenditure of AMC

Staff Salary - Rs 22 crore

Electricity Bill (Water Supply) - Rs 4 crore

Electricity Bill (Streetlight) - Rs 75 lakh

Repayment of Loan Instalments - Rs 1 crore

Electricity Bill (STP Plant) - Rs 70 lakh

Pension - Rs 3 crore

Educational Expense - Rs 2 crore

Salaries of SHG staff - Rs 1 crore