Outsiders to audit BMC’s big spend …Clara Lewis I TNN
Mumbai: The mandarins at the civic headquarters will let their performance be graded by a third party. Only, this audit will be limited to their ability to utilise the budget funds.
The audit will mainly consider the capital expenditure that is devoted entirely to replace, rehabilitate and upgrade the city’s civic infrastructure. In other words, if the water supply or health budget has not been spent, the third-party audit will show up just how and where the department concerned had failed.
Incidentally, this is the first local self-government in the country to prepare an outcome-based budget. The 2008-’09 budget with a capital expenditure of Rs 8,586 crore is to be passed this month-end.
The need for an audit becomes clear when one considers the fact that the current financial budget for capital expenditure, though initially budgeted at Rs 5,900 crore, had to be revised by January-end to Rs 3,680 crore. And, officials admit that the actual spend is likely to be even less.
“We will evaluate each major work undertaken in 2008-’09 on different parameters and this will be done by a third independent party. In the budget, we have spelt out the work to be undertaken and the source for the funds. At the end of the financial year, we will evaluate the flagship programmes to understand the problems encountered during the implementation and management of major programmes,’’ said Manu Kumar Srivastava, additional municipal commissioner, in charge of finance and who also headed the budget-making exercise.
He pointed out that capital expenditure had increased annually by Rs 500 crore in the years after the 26/7 floods as against earlier when it had stagnated. “This year, the budget has been prepared after studying critical concepts of output and outcomes. We have developed a set of key targeted outcomes for major municipal programmes and activities. At the end of the financial year, we will measure how effectively the various programmes have been implemented. This is the first attempt at an outcome-based budget by any local self-government in the country,’’ he added.
The BMC has also now begun utilising funds running into hundreds of crores stashed away in various special funds like asset replacement fund, land acquisition and development fund. This year, it proposes to utilise Rs 1,324 crore from the asset replacement fund for major water supply, roads and sewerage projects.
DIVIDE TO RULE…
DIVIDE TO RULE…
The biggest challenge faced by the BMC in implementing the budget is the lack of planning. Often money remains unspent as estimates and tenders are not ready even when the financial year comes to and end. To ensure this does not happen, the planning and design department has been split into four sections, each headed by a deputy chief engineer. Each cell will look at preparing tenders and estimates for key departments such as health, storm water drains and roads. Additional municipal commissioner, Manu Kumar Srivastava said, “The expansion of the planning and design cell will ensure planning in advance and also tenders being awarded sufficiently early in the financial period.’’ The cells are likely to become functional soon. TNN