The burden of loans on the GHMC treasury is increasing. The revenues are not on expected levels while the debts are skyrocketing and interests in them are becoming a big burden. The situation is as such it will be difficult to pay salaries and loan installments unless new loans are taken.
Going by the expenditure report for the financial year 2021-22, Rs 1178.4 crore has been collected as against Rs 1850 crore so far in the form of Taxes. Advertising revenue was Rs 45 crore a year earlier but now stands at Rs 9.55 crore. Rs 165.21 crore was spent on vehicles and other machinery. Vehicles used by the authorities consumed Rs 49.66 crore worth of fuel. Rs 238.47 crore was spent on the maintenance of the dumping yard.
While GHMC planned to borrow Rs 1,224.51 crore in the current financial year, the authorities have already borrowed Rs 1,593.44 crore, exceeding expectations. Rs 1,407 crore has been spent on the development of roads, flyovers, traffic junctions, and Rs 126 crore on Nalas. The corporation raises Rs 3,000 crore for SRDP through bonds and bank loans. While a loan of Rs 1460 crore is required for CRMP, 60 percent fundraising has already been completed. GHMC is currently paying interest of Rs 200 crore per annum on bank loans and debentures. There is criticism about spending Rs 52 crore on mobile applications and other IT services.