Tax dues from govt agencies hold back civic body

HYDERABAD: The Greater Hyderabad Municipal Corporation, faced with a funds shortage, is carrying out a fine balancing act to pay staff salaries and take up infrastructure works, even as Central and state government agencies, besides individual taxpayers, owe Rs 8,000 crore in property taxes.

Official sources said that private parties account for Rs 2,000 crore of the total, while government agencies are to clear dues of Rs 6,000 crore.

Many dues have not been cleared for years, with the civic body stating that it was to receive Rs 5,258 crore from government buildings last year, with the Khairatabad zone alone accounting for Rs 2,000 crore of the due.

This year, the GHMC has collected Rs 1,523 crore, which is Rs 61 crore higher than last year’s collection.

GHMC sources said that the civic body has not been preparing a list of top defaulters or sending notices on the instruction of former Chief Secretary Somesh Kumar.

“If we collect Rs 8,000 crore, apart from the annual property tax collection, the corporation could be debt-free and could save about Rs 2 crore per day, as the corporation is paying interest for loans taken for the several completed and ongoing infrastructure works, apart from paying our salaries on time,” a senior GHMC official said on the condition of anonymity.

The official said that the GHMC makes around Rs 110 crore every month, on average, which is insufficient to meet all ends. Staff salaries are delayed by at least a week to 10 days, while payments to outsourced employees are delayed by 20 days.

“Without a strong political will, the GHMC will never become self-sustainable and deliver goods to taxpayers on time,” the official said.

Who owes what:

Government departments have piled up property tax dues for nearly a quarter century

Medical: Rs 1,185 crore, pending for 23 years

Police: Rs 420 crore

Prohibition and Excise: Rs 895 crore, pending for 21 years

Education: Rs 385 crore, pending for 16 years

Other government buildings: Rs 5,258.4 crore

30 public undertaking buildings, including HMDA, HMWS&SB, Hyderabad Metro Rail Limited, TSRTC, Transco, and Zoo Park: Rs 306.28 crore, pending for seven years