A Perspective on Vizag
Tough year for Vizagities ahead due to financial crunch
GVMC Office, January 6, 2010
The people of the city might have to brace themselves for a tough year ahead with regards to civic amenities if the estimates of the 2010-11 budget presented by GVMC on Wednesday are anything to go by. Visakhapatnam, which is choc-a bloc with may under construction flyovers and other civic structures might remain unless the Centre becomes generous which is very unlikely. The GVMC budget stipulates to have income around Rs.1750 crores with 42 percent of it amounting to Rs.749 cores expected from the State and Central governments as grants and funds under the JUNNURM scheme.
According to budgetary provisions, almost 41 percent of the entire expenditure of Rs.1729 crores, translating to almost Rs.701 crores will be spent in development programmes. JNNURM funds to be released by the Centre, the State Government along with the local body seeking the funds needs to put to around 30 percent of the total expenditure of the conceived project.
Considering that the entire income from JNNURM which is almost 42 percent notional one, entirely depends on the ability of the State and the local bodies' ability to deposit the matching grant, which is very tough to come by, various proposed projects and the ongoing ones may be stalled for the year. GVMC did not show any special fund outlay for seeking the JUNNURM grants in its current budget exercise while the State Government's financial condition is already in doldrums with the State facing a deficit of over Rs.7,000 crores.