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'Get ready for tough AMC budget' Wednesday, December 12, 2001

SOURCE - TIMES NEWS NETWORK
AHMEDABAD: Municipal Commissioner P Panneervel has forecast unpleasant decisions in Budget 2001. Cost cutting focussed on reduction of workforce, temporary stalling of capital projects and some 'sacrifices' will be its highlights.

"Fiscal indiscipline and over-staffed status of certain departments will have to be streamlined to preserve AMC's health and future," said Panneervel.

"Take for example the engineering department has got sanctioned posts of 689. But, over the years five zonal offices recruited 4,800 daily wage earners of whom only 800 are permanent staff," he added,

In light of such instances, he has directed all the deputy municipal commissioners and additional city engineers to do some stock taking and recommend cuts _be it workforce or expenditure.

Sources said that 20 per cent reduction in daily wage earners and a 10 per cent cut in expenditure have been prescribed by the top brass of AMC. "Once the recommendations are made, we will approach the high court to get permission to phase out the junior-most staff, while those having put in many years will be retained. Downsizing of workforce and cutting down on expenditure would be based on prioritising AMC's responsibilities and duties," quipped Panneervel.

The municipal commissioner expects to clear out all corporation's low and high interest debts, worth Rs 42 crore and Rs 300 crore respectively, by the turn of the financial year 2001-2002.

"With slight adjustments to AMC's fiscal framework coupled with disciplining in all departments will ensure financial health. One cannot have AMC's contractors going without payment in the future. With these apparently harsh decisions the corporation will come out of the red and also have financial institutions and banks lining up with loan offers highlighted by low interest rates," Panneervel said.

While the Budget 2001 may not propose new taxes, it will also put forth a realistic picture of the corporation's fiscal status. The municipal commissioner said it could be income-driven, one that would have expenditures drawn according to the civic body's income.

"I don't want to waste tax payers' money in paying off debts taken by corporation for large development projects. Till AMC recovers its fiscal health we will focus on emergency duty and essential civic services," Panneervel proclaimed.

But, the municipal commissioner's dreams might yet turn sour with his 'unpleasant' decisions requiring sanction of AMC's political bosses. As has been repeated in the past _ a 'realistic budget' often gets warped and ends up doubling its outlay proposed by the municipal commissioner, thanks to the vote-bank leanings of AMC's political wing.

News Source : The Times of India [India's best Newspaper]

 

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