Pune Municipal Corporation (PMC) is grappling with a budget deficit of ₹2,512 crore for the financial year 2023-24, highlighting a significant gap between projected and actual income.
Despite a proposed budget of ₹9,515 crore by former Commissioner Vikram Kumar, the corporation has only managed to collect ₹7,003 crore in revenue, raising concerns about the financial planning and sustainability of the civic body.
The Accounts and Finance Department of the PMC presented this financial report to the Standing Committee, revealing the disparity between the anticipated and actual income.
This financial gap reflects the ongoing challenge faced by the corporation in balancing its expenditures with its real income, even though the deficit has been reduced to ₹112 crore, a figure that the administration claims is under control.
In previous years, the deficit had surged, reaching ₹650 crore post-2017 due to expenditure consistently surpassing income. For the fiscal year 2023-24, the administration incurred a total expenditure of ₹7,112 crore, but revenue generation has stagnated between ₹6,000 and ₹7,000 crore annually.
The PMC has struggled to meet its revenue targets from key sources like property tax, development fees, water charges, and LBT (Local Body Tax) reimbursement, which has significantly impacted its financial health.
Moreover, despite approving several large-scale infrastructure projects in recent years, many smaller projects have been delayed, leading to frustration among citizens. The lack of efforts from the administration to boost revenue generation further compounds the issue.
While the PMC’s budget size has continued to grow, its revenue generation has not kept pace, leaving the civic body dependent on managing deficits and cutting expenditures to stay afloat.
