News Desk, Kolkata : Over the past two years, contractors in Kolkata have accumulated outstanding dues exceeding one billion rupees from the municipal corporation, even after completing their assignments. Notably, post their retirement in February 2023, municipal employees have yet to receive their retirement benefits, including commute and gratuity payments, totaling over 200 crore rupees. Mayor Firhad Hakim, grappling with personal health issues, is set to present the municipal budget for the 2024-25 fiscal year on Saturday. The financial strain on the treasury is evident, with a deficit of 177 crore rupees in the 2022-23 budget, followed by a reduced deficit of 144 crore rupees in the subsequent fiscal year.
Despite the economic challenges, Mayor Hakim is poised to present another substantial deficit budget for the upcoming year, aiming to bridge the financial gap. The municipality’s financial officials attribute the deficit to a lack of balance between revenue and expenditure, leading to a consistent shortfall in the treasury. The property tax collection witnessed a significant increase, reaching 1100 crore rupees in the 2022-23 fiscal year, compared to 890 crore rupees in the previous financial year.
In the current fiscal year, up until February 16, the property tax collection has already surpassed 1069.36 crore rupees, indicating a potential record-breaking revenue collection by the end of the fiscal year. Mayor Hakim, despite initial efforts to boost property tax revenue, has not achieved the desired results, and officials express skepticism about reaching a satisfactory financial position.
The Municipal Revenue Office reports that from April 1, 2022, to February 16, 2023, property tax collections amounted to 978.81 crore rupees. In the same period for the 2023-24 fiscal year, collections have reached 1069.36 crore rupees, reflecting a marginal increase of 9.25 percent. However, a municipal official acknowledges that while Mayor Hakim has made earnest attempts to enhance property tax revenue, the actual results fall short of expectations.
The financial challenges faced by the municipal corporation extend to the delayed retirement benefits for employees, further straining the municipality’s resources. The municipality’s financial officials emphasize that revenue generation is crucial for meeting expenses, and property tax remains the primary source of revenue.
The narrative unfolds with Mayor Hakim’s attempts to address financial constraints, balancing the needs of the municipality with the economic challenges faced by its citizens. His presentation of a deficit budget raises questions about the municipality’s financial sustainability and prompts concerns about its ability to meet the diverse needs of the citizens.
As the fiscal year approaches its end, the municipal officials are cautiously optimistic about achieving a record property tax collection, but doubts linger about whether it will be sufficient to offset the existing deficit. The story paints a vivid picture of Kolkata’s municipal challenges, with the mayor’s personal health issues adding a layer of complexity to the already intricate financial landscape.
In summary, the municipality grapples with a persistent deficit, delayed employee benefits, and Mayor Hakim’s ongoing health concerns. The presentation of another deficit budget raises eyebrows, signaling a need for comprehensive financial strategies to ensure the municipality’s long-term financial stability. The citizens of Kolkata anxiously await the outcomes of Mayor Hakim’s budget presentation, hoping for solutions to address their pressing needs amidst the city’s financial uncertainties.
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