Promised multi-crore project will leave GHMC bankrupt

Hyderabad: The GHMC is not only the biggest but also the richest municipal corporation in TS. However, its coffers will run dry if any of the
sets of promised multi-crore projects in the manifestos of political parties is implemented sans generous financial support from the state government.

In 2014-15, the GHMC collected over Rs 1,105 crore towards property tax, a 45 per cent hike, but yet it cannot financially support the promised projects without resort to a PPP model.

The corporation, as of now, is overburdened with heavy funds spending for the TS road transport authority and for undertaking the sewerage works in 12 municipalities.

This raises the question as to “where are the funds” to execute the projects in the manifestos. In 2015, the GHMC budget was of Rs 5,500 crore and it had managed to spend about Rs 1,200 crore on various works.

It had about Rs 200 crore as surplus as compared to the revenues and total expenditure. With the new council being elected, it will have to also cater to the salaries of 150 corporators.

The previous five-year term of the 150-member GHMC council cost the exchequer Rs 15.49 crore. The expenditure was on their phone bills, lunch during council meetings, study trips, laptops and medical insurance.

Other arrangements like corporators’ offices in the GHMC building and laptops have emptied the corporation’s coffers. The municipal corporation, as per the 2015 records, had  about Rs 1,000 crore in deposits and can possibly raise some amount through bonds but that will not suffice.

The GHMC had to shell out Rs 100 crore to TS road transport authority after it was brought under control of the municipal body. Hyderabad has a separate body for water supply and sewerage and as per rule 25 per cent of the property tax has to be shared with Water Board.