In association with
PUNE
MUNICIPAL
CORPORATION
BUDGET 2015-16
BUDGET MAKING PROCESS
Administrative
ward
15 administrative
wards prepare their
budget
Departments
The HoDs of
various departments
prepare the
department budget
Commissioner
The Commissioner
prepares the budget
on basis of the
information
received
Standing
Committee
The SC modifies
the Commissioner’s
Budget
General Body
It is the final
authority to
approve the budget
<Insert section description here>
COMPONENTS OF THE BUDGET
Revenue Income
Income that is recurring in nature
All receipts are considered as revenue
incomes by PMC.
Eg. Rents, grants, fees and charges
Capital Income
Income that is non recurring or one time
PMC does not account any income as
capital income
Eg. Sale of land, lease of land
PMC Budget
Revenue Expenditure
Expenditure that is recurring
Eg. Salaries, O&M
Capital Expenditure
Expenditure that is non recurring and
massive in terms of amount.
Eg. Acquisition of land, purchase of real
estate, construction of buildings.
Even income coming from sale of land, development charges is accounted as revenue income
by PMC.
2015-16 PMC BUDGET
Expenditure Side
5000
5000
4500
4500
4000
4000
3500
3500
Amount in Rs. Cr
Amount in Rs. Cr
Revenue Side
3000
2500
2000
1500
1000
500
0
Revenue
Income
(B.E)
Capital
4,480
income, 0
2015-16
3000
2500
2000
1500
1000
500
0
Revenue
Expendit
ure(BE)
2,240
Capital
Expendit
ure(BE)
2,240
2015-16
Note that hence forth all the figures are rounded off to the nearest 100.
TRENDS IN PMC BUDGET
Over the past 4 years, actuals have been 70-75% of the budget estimates.
Average annual increase of 6% in both Budget and Actuals
Budget estimates
Actuals
4480
4170
4150
3630
3250
3200
27%
14.5%
2780
40%
18.5%
2960
2980
2340
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
BREAK UP OF REVENUE INCOME
BUDGET ESTIMATES
4500
4%
5%
4000
8%
6%
3500
0%
3000
9%
16%
13%
2000
10%
8%
15%
1000
5%
7%
15%
11%
10%
17%
9%
16%
19%
22%
15%
7%
5%
Octroi
Local Body Tax
Property Tax
Water Tax
Own Source Income
Others
Grants
Loans
5%
21%
14%
3000
18%
0%
2500
0%
0%
2000
0%
6%
11%
25%
0%
39%
500
8%
7%
• ~77 percent of the BE
• Own source income mostly from
development charges
9%
16%
13%
9%
2%
10%
2500
1500
A C T UA L S
40%
40%
34%
33%
29%
0
1%
0%
1500
0%
12%
0%
8%
0%
9%
12%
13%
21%
21%
5%
4%
9%
22%
5%
14%
0%
15%
0%
18%
1000
6%
13%
0%
500
40%
39%
39%
35%
0%
0
2010-11
All figures in crores
2011-12
2012-13
2013-14
1. OCTROI/ LBT
BUDGET ESTIMATES
ACTUALS
Octroi/LBT
Octroi/ LBT
1660
1460
1250
1440
1500
940
1090
1150
1030
910
For 2014-15, revised estimates are same as budget estimates
Octroi replaced with LBT in April 2013 – led to shortfall in 2013-2014
LBT to be abolished effective August 2015 – replacement not yet finalized
2. PROPERTY TAX
BUDGET ESTIMATES
10%
hike
Property Tax
6%
hike
470
500
530
ACTUALS
Property Tax
930
740
380
540
440
290
600
For 2014-15, revised estimates are same as budget estimates
Collection Efficiency is just 35% implying lots of untapped potential for more
revenue
3. BUILDING AND DEVELOPMENT
CHARGES
BUDGET ESTIMATES
ACTUALS
Development charges and Builing permissions
Development charges and building permissions
900
800
530
340
620
610
740
610
600
580
For 2014-15, revised estimates are same as budget estimates
Actuals have remained relatively flat despite boom in real estate construction
KEY OBSERVATIONS
 Large variance between actual and budget on the revenue side which
eventually leads to less spending than budgeted
 Lack of diversification of revenue with 3 sources accounting a
majority of the revenue
 Dependency on grants is less compared to most other ULBs but
this will change once LBT is abolished
 Borrowing capacity not being tapped to fund capital projects
especially where there is revenue potential from these capital assets
BREAK UP OF REVENUE EXPENDITURE
A C T UA L S
BUDGET ESTIMATES
Actuals are ~90% of estimates.
(quite realistic)
2500
1%
2%
2000
2%
2%
3%
4%
5%
6%
1500
6%
3%
3%
0%
0%
4%
37%
0%
11%
43%
0%
10%
43%
1800
29%
39%
1%
7%
38%
0%
9%
0%
8%
41%
2%
3%0%
1200
1000
0%
9%
44%
2%
3%
0%
0%
10%
600
400
2%
3%
2%
0%
10%
52%
51%
2010-11
2011-12
2%
2%
2%
37%
35%
34%
32%
800
55%
39%
1600
1400
39%
40%
1000
500
5%
4%
4%
2%
0%
9%
0%
9%
48%
47%
2012-13
2013-14
200
0
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
Major expenditure is on salary of
employees followed by others.
Salary
O&M
Depreciation
Other
Works to be done by ward office
Loan Repayments and interest
Ward level works
1. SALARY
BUDGET ESTIMATES
ACTUALS
Salary
Salary
1240
750
600
510
B.E
570
B.E
820
830
B.E
B.E
820
660
680
B.E
B.E
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
2010-11
2011-12
2012-13
2013-14
Actuals
Actuals
Actuals
Actuals
For 2014-15, revised estimates are same as budget estimates
Actual spend growing at 8%
2015-16 show staggering rise of 50% due to inclusion of education department
salaries and approval of 3,500 new posts
2014-15 RE
44 percent
of estimate revenue
expenditure spent on
salaries
4.7 lakhs per
head employee salary
2013-14 Actuals
47 percent
2014-15
of actual revenue
expenditure spent on
salaries
4.6 lakhs per
head employee salary
*Note that simple average method is used to calculate per head salary
2. OPERATION AND MAINTENANCE
BUDGET ESTIMATES
O&M
170
150
130
ACTUALS
O&M
160
170
160
150
130
130
110
BE
BE
BE
BE
BE
BE
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
2010-11
2011-12
2012-13
2013-14
For 2014-15, revised estimates are same as budget estimates
O&M expenditures include maintenance and repair works.
These have been consistently 8-10% of the total expenditures
Easy to estimate if database on assets is maintained
CAPITAL EXPENDITURE
BUDGET ESTIMATES
ACTUALS
Capital Expenditure
2250
Capital Expenditure
2240
1410
2180
1990
1230
1250
2011-12
2012-13
700
1900
1900
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
2010-11
2013-14
VARIANCE IN CAPITAL EXPENDITURE
2200
2000
1900
2200
2200
1900
35%
34%
1300
35%
1200
65%
1400
700
Budgeted
Actuals
2010-11
Budgeted
Actuals
2011-12
Budgeted
Actuals
2012-13
Budgeted
Actuals
2013-14
Budgeted Budgeted
2014-15
2015-16
Note that PMC does not provide break down of actuals.
Major expenditures are on Roads, Water and Sewerage, and JNNURM projects
Consistently over estimated by 35% or more
Analysis as per the functions of PMC.
Not department wise analysis as each
function can be performed by one or
more departments
METHODOLOGY FOR FUNCTIONAL ANALYSIS (AS DEVELOPED BY DR. RAVIKANT JOSHI, CRISIL)
18 function of Municipal Corporations as per the 74th Amendment Act.
Urban planning including town planning.
Regulation of land-use and construction of buildings.
Planning for economic and social development.
Safeguarding the interests of weaker sections of society,
Slum improvement and upgradation.
Urban poverty alleviation.
Planning and Regulation
Urban Poverty Alleviation & Social
Welfare
Provision of urban amenities and facilities such as parks, gardens, playgrounds.
Promotion of cultural, educational and aesthetic aspects.
Urban forestry, protection of the environment and promotion of ecological aspects.
Urban Forestry, recreational
infrastructure & Culture
Public health, Burials and burial grounds;
cremations, cremation grounds and electric crematoriums.
Sanitation conservancy and solid waste management. –
Public Health
Sanitation Solid waste management
Cattle pounds; prevention of cruelty to animals.
Vital statistics including registration of births and deaths.
Fire services., Regulation of slaughter houses and tanneries.
Other Services & support
functions
Public amenities including street lighting, parking lots, bus stops and public conveniences.
Roads and bridges.
Water supply for domestic, industrial and commercial purposes. – Water & sewerage services
Public Works and civic
amenities
REVENUE INCOME BY FUNCTION
 Share of tax collection is highest
 Second highest is from planning and
regulation
 Third highest share is from water and
sewerage service.
315
185
697
102
89
76
592
Public Education
723
349
984
548
540
781
Public Health
548
Water & Sewerage Service
2035
1146
Public works & Civic Amenities
Sanitation and Solid Waste
Management
334
296
Urban Poverty Alleviation and
Social Welfare
Urban Forestry, Recreational
Infrastructure & Culture
91
882
Other Services and Support
Functions
1346
1518
2046
Planning and Regulation
1471
General Administration and Tax
Collection
Actual
Actual
Actual
Actuals
Revised
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
In Rs Cr
REVENUE EXPENDITURE BY FUNCTION
 General administration shares ~2530% of expenditure.
 Water and sewerage shares ~17-19%
of expenditure
 Public education shares ~17-19%
13
10
203
15
140
137
90
17
179
156
104
340
16
345
296
36
28
32
324
280
265
182
202
123
155
267
317
264
11
243
14
17
34
322
262
220
143
318
354
Urban Poverty Alleviation and
Social Welfare
Urban Forestry, Recreational
Infrastructure & Culture
Public works & Civic Amenities
Sanitation and Solid Waste
Management
Public Health
84
Water & Sewerage Service
234
28
297
311
358
Actuals
Actuals
Actuals
Actuals
Revised
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
62
632
64
279
Public Education
162
209
28
37
Other Services and Support
Functions
Planning and Regulation
404
General Administration
In Rs Cr
SALARY TRENDS- FUNCTIONAL WISE
 Salary expenses are most for
Sanitation and Solid Waste
Management, which includes,
road cleaning, sewage and waste
transportation.
 The second highest expenditure is
on general administration
9
17
47
124
10
24
53
141
12
23
61
15
13
188
271
85
65
174
74
95
29
73
123
34
117
59
52
21
104
134
132
110
Actuals
Actuals
Actuals
Actuals
Revised
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
50
45
19
60
28
Urban Poverty Alleviation and
Social Welfare
Urban Forestry, Recreational
Infrastructure & Culture
200
91
170
Public Education
Public works & Civic Amenities
66
155
62
57
24
15
28
Other Services and Support
Functions
Sanitation and Solid Waste
Management
Public Health
Water & Sewerage Service
Planning and Regulation
218
General Administration
CAPITAL EXPENDITURES BY FUNCTION




64
71
84
Major share is for Public works & civic amenities (~35%)
Second highest share is of planning & regulation (~27%)
Third highest share is of water and sewerage (~17%).
2015-16 Budget shows a rise of 86% for sanitation and solid waste. (reasondecentralized waste management plants)
63
78
129
71
74
114
721
710
106
24
249
702
62
67
269
677
64
41
317
96
80
166
790
60
39
393
134
83
143
747
62
54
378
130
116
142
772
117
36
369
Other Services and Support
Functions
Public Education
Urban Poverty Alleviation and Social
Welfare
Urban Forestry, Recreational
Infrastructure & Culture
Public works & Civic Amenities
Sanitation and Solid Waste
Management
Public Health
Water & Sewerage Service
529
523
486
603
505
28
19
6
5
0
0
2010-11 BE 2011-12 BE 2012-13 BE 2013-14 BE 2014-15 BE 2015-16 BE
Planning and Regulation
General Administration
In Rs Cr
PRIORITIES- DEPARTMENT WISE
Sr. No
Department
Revenue
Capital
Expenditure Expenditure
Total
% Of
Total
Budget
1
Water
354
369
723
16%
2
Road Improvement Department
85
585
670
15%
3
Sanitation And Solid Waste Management
262
117
380
8%
4
Education
340
34
374
8%
5
Public Health
162
36
198
4%
6
Slum Improvement
33
58
91
2%
In Rs Cr
WATER DEPARTMENT
450
400
 In Budget 2015-16, a hike of 50% in water tax is
proposed. Hence, the 66% rise in income.
 Variance in Capital expenditures is huge.
350
In
Rs Cr
300
250
200
150
100
50
0
2010-11
2011-12
2012-13
2013-14
2014-15
Revenue Income (Actuals)
Revenue Expenditure (Actuals)
Capital Expenditure (Actuals)
Revenue Income (BE)
Revenue Expenditure (BE)
Capital Expenditure (BE)
2015-16
WATER DEPARTMENT
Water Supply by PMC = 1232 Million Litres/day
Total expenditure by water department (2015-16) = 500 crores
Cost of supplying per litre water per day = Rs. 4 / litre-day
Population served = 2.7 million people (2011 census population is 3.1million 
PMC water supply coverage is not 100%)
Cost of supplying water per person per litre per day = Rs. 5/ person-day
Total water tax collected = Rs. 400 crores
Tax collected per person per day = Rs. 4/ person-day
*Assuming entire population served is paying the tax
ROAD IMPROVEMENT
Revenue Income
Revenue Expenditure
Capital Expenditure
600
300
300
200
100 100
200 200
100 100
600
100
200
100
200
200 200
100
Actuals
Actuals
Actuals
Actuals
Budgeted
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
 Income and revenue expenditure show a flat trend
SANITATION AND SOLID WASTE MANAGEMENT
Revenue Income
Revenue Expenditures
260
180
160
140
220
200
30
20
20
20
10
20
Actuals
Actuals
Actuals
Actuals
Budgeted
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Capital Expenditures
120
110
60
60
60
60
BE
BE
BE
BE
BE
BE
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
 Tax collected from
citizens is the major
source income
 Major expenditure is
towards salaries.
 Includes road
cleaning, waste
transport vehicles,
cleaning of drainage
and chambers,
sanitation of slum
habitats, sewage
water transport
vehicles
SANITATION AND SOLID WASTE MANAGEMENT
Budget 2015-16
Quantity of garbage collected = 1500 – 1600 tones
Revenue expenditure = 260 Cr
Capital Expenditure = 120 Cr
Total expenditure = 380 Cr
Cost of sanitation and solid waste management = Rs. 1 Cr/day
Revenue generation through sewerage tax = Rs. 8 Lacs/day
Revenue as % of Cost = 8%
EDUCATION DEPARTMENT
PRIMARY EDUCATION
REVENUE
INCOME (Rs.cr)
2010-11
Actuals
2011-12
Actuals
2012-13
Actuals
2013-14
Actuals
2014-15
RE
2015-16
BE
50
60
60
70
70
72
Government
Grants
 Income for Primary Education department is through government grants
 Major Revenue Expenditures (2015-16) are in the form of:
Salaries
Dearness Allowance
Pension
32%
25%
21%
 Capital Expenditures (2015-16) are in the form of various development works (68%)
in the schools followed by provisions for incomplete work (25%)
Number of
schools
Number of
students
Students per
school
275
84191
300
Total expenditure = 320 cr
Expenditure per school = 1.2 cr
Annual Exp per child =38,000
SECONDARY EDUCATION
REVENUE
INCOME (Rs.cr)
2010-11
Actuals
2011-12
Actuals
2012-13
Actuals
2013-14
Actuals
2014-15
RE
2015-16
BE
Fees and Charges
0.0
0.0
0.0
0.0
0.0
25.0
Grants
13.8
12.6
21.8
15.8
25.0
25.0
 Income for Secondary Education department is through government grants
The major revenue expenditures (2015-16) are on:
Salaries
PMPML bus service
50%
27%
The capital expenditure (2015-16) is for construction of toilets- Amount is 3 lakhs.
(only one head)
Total expenditure on Secondary Education = Rs. 54 cr
Number of Secondary Schools = 16
Expenditure per school = Rs. 3.4 cr
PUBLIC HEALTH
16
Revenue Income
Health assistance programmes
for Members & Employees
14
Income from Hospitals
In Rs Cr
12
10
26%
Sale of forms
4%
58%
8
6
Miscellaneous receipts
51%
45%
4
49%
8%
3%
2
22%
31%
0
2%
2010-11
Actuals
4%
2011-12
Actuals
49%
8%
0%
35%
4%
2012-13
Actuals
Grants and assistance
56%
9%
0%
28%
4%
2013-14
Actuals
1%
9%
1%
7%
27%
24%
9%
7%
2014-15
Revised
Fees/ charges/ licence
Birth and Death Department
2015-16
Budgeted
 Major income is from funds received for health assistance to employees and
members
 Fees and charges seem to be a consistent source of revenue (no fluctuations)
 Other grants show a decreasing trend.
PUBLIC HEALTH
Revenue Expenditure (2015-16)
Salaries
Material purchase
Grants/ assistance to weaker sections
56.4%
23%
10%
Capital Expenditure (2015-16)
Development works in
hospitals
Provisions for incomplete
works of previous years
Development of
crematoriums
48%
26%
25%
Budget 2015-16
Total Revenue Expenditure = Rs. 161.5 cr
Total Capital Expenditure = Rs. 36.3 cr
Total Expenditure = Rs. 200 cr
Total Number of Hospitals and Clinics = 87
Expenditure per clinic/hospital= Rs.
2.3 cr
SLUM IMPROVEMENT
Revenue Income
20
18
Photo pass receipts
16
Miscellaneous
14
Housing scheme
15%
12
In Rs Cr
Sevice charges
Health assistance
scheme
Grants
78%
10
19%
8
68%
6
4
2
0
73%
72%
22%
69%
0%
2015-16
BE
27%
3%
2014-15
BE
66%
18%
9%
2013-14
Actuals
28%
1%
2012-13
Actuals
14%
0%
2011-12
Actuals
0%
2010-11
Actuals
Fees/charges/
license
 2015-16 Budget has estimated
78% of income from service
charges. (480 % rise)
 Post 2011-12, there has been
no expense on housing
scheme for the SC/STs.
 SRA Grants constitute ~20%
of total
SLUM IMPROVEMENT
35.0
30.0
Revenue Expenditures
 ~60% is spent of salaries
 ~30% on ward office works
 ~10-15% on toilet repairs
Percentages relate to actuals
Ward office works
Toilet repairs
27%
33%
Scheme implementation
25.0
7%
28%
20.0
8%
In Rs Cr
Miscellaneous
10%
0%
19%
0%
15%
10%
48%
37%
65%
0%
0.0
Grant/ assistance
49%
68%
6%
0%
8%
0%
0%
7%
6%
0%
2010-11 Actual 2011-12 Actual 2012-13 Actual 2013-14 Actual
Material expenses
Honanarium
10.0
48%
Salary
Road repairs
29%
15.0
5.0
School repairs
Electricity expenses
4%
6%
7%
2014-15 BE
2015-16 BE
Drainage repairs
Babasaheb Ambedkar Hostel
expenses
SLUM IMPROVEMENT
CAPITAL EXPENDITURES (2015-16)
1% 2%
7%
39%
51%
Construction of
Toilets
Development
works
Improvements in
Dalit vasti
SRA
Ward office works
51% is allotted to development
of works
39% for construction of toilets
91 crores are allocated for slum
improvement in 2015-16 Budget,
which is 2 % of the total budget
The latest Environment Status Report for 2012-13 says there are 564 slums in the city, of which,
353 (64%) are declared - their existence is officially recognized and they are provided basic
services,
211 (36%) are undeclared and ineligible for basic services from the municipal corporation.
There are approximately 11.89 lakh people residing in slums, which constitutes about 40% of
the city’s total population.
URBAN TRANSPORT FUND (NOT A DEPARTMENT)
Revenue Income
Revenue Expenditure
Capital Expenditure
990
940
840
940
810
630
590
420
390
440
410
380
220
250
220
310
100
110
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
Actuals are not available
 Revenue Income comes from JNNURM grants, advertisement permission fee, hawker fee,
deposits for road repairs, street tax.
 Revenue Expenditure is for road repairs, street lights, PMPML allocations, PMPML salaries and
pension, PMPML passes
 Capital expenditures are for road repairs, public transport project, procurement of buses under
JNNURM, vehicle management department, electricity department.
OBSERVATIONS ON THE BUDGET DOCUMENT
45 revenue income heads
58 revenue expenditure heads
18 capital expenditure heads
• No prioritization.
• Inappropriate classification of line
items
• Actuals for capital expenditures are
missing
• Extra-ordinary receipts and
payments lack clarity.
• Some places object heads and
accounting heads are used in
combination.
• Summary sheets and detailed sheet
totals do not match.
No one-on-one connection
between revenue heads and
cost heads
WOMEN AND CHILD DEVELOPMENT FUND- L BUDGET
 Falling trend in L
Budget allocations.
 ~80-90% is in the form
of revenue
expenditures.
 Year on year growth is
(-) 1%
5%
Percentage of total budget
5%
4%
4%
3%
3%
2%
2%
1%
1%
0%
Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
% 0f total
3%
4%
5%
5%
4%
2%
Note: Actuals are not available
Major expenditures are towards education of children followed by slum improvement till
2014-15. In 2015-16,major expenditure is towards PMPML (55%)
5 percent of expenditures, after deduction of committed
expenditures, should be towards women and child
development fund
BACKWARD CLASS FUND – ‘B’ BUDGET
6%
 Rising trend in
allocations to B Budget.
 5 percent of the entire
budget shall be allocated
for the backward class
citizen’s from 1992-93.
 Year-on-year growth is
23%.
Percentage of total budget
5%
4%
3%
2%
1%
0%
Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
% 0f total Budget
2%
3%
3%
3%
4%
5%
Note: Actuals are not available
Dalit population (Census 2011) - 4,53,421 (14 % of total
population)
Non Dalit Population (Census 2011) - 26,71,037
Per capita allocation = Rs 5212 per person
URBAN POOR BUDGET – P BUDGET
Revenue Expenditure
Capital Expenditure
1400
1200
Amount in Cr
1000
800
600
400
200
0
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
Budgeted
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
 ~40 percent of the
total budget is
considered at urban
poor budget.
 Example, Slum
improvement
department’s entire
budget is included in P
Budget.
 Road department’s
40% budget is
included in P budget.
Note: Actuals are not available
A representative budget: As the Pune City has 40% of
the total population staying in slums, the PMC
departments that have works that seemingly benefit the
poor have been considered to spent 100 percent of their
budget as urban poor budget.
Budget Per Capita & Quality of Budget Estimates
City
Bangalore
Chennai
Jaipur
Surat
Hyderabad
Mumbai
Pune
2011 Pop
(Lacs)
84.4
46.5
30.5
44.7
67.3
124.4
31.2
ULB Area
741
426
467
327
923
437
244
Per capita
allocation
7,974
9,615
3,980
10,202
8,247
28,414
14,356
Receipts
Revised 2014-15
(Rs Cr)
Pune
4,150
4,479
Chennai
Bangalore
Revised 2014-15
(Rs Cr)
Pune
35,347
5,688
6,396
Hyderabad
Jaipur
Budget 2015-16
(Rs Cr)
7%
Mumbai
Surat
Payments
3,205
3,598
1,115
1,217
3,960
4,447
2,894
6,730
4,150
4,479
Budget 2015-16
(Rs Cr)
7%
Mumbai
11%
Hyderabad
11%
Surat
8%
Jaipur
11%
Chennai
57%
Bangalore
35,347
4,599
5,550
4,020
4,560
1,083
1,214
12%
11%
4,432
4,471
2,927
17%
6,730
1%
56%
Data from municipal budgets
Proportion of Capital Expenditure
Capex
Other Expenses
Salaries
33
50
Rs
2,240 Cr
22
Rs
985
Cr
32
28
Rs
1,254
Cr
Mumbai
Pune
48
62
67
69
35
27
20
25
25
19
17
Surat
Hyderabad
8
Bangalore
Chennai
14
Figures in %
Estimates for the year 2015-16
Data from municipal budgets
Capex Budget vs Capex Requirement
•
Pune with a projected 2030 Population of 10 million
•
coverage.
will be the 5th most populous city in India
•
It will contribute USD 76 billion (Rs. 4,56,000 Cr) in
•
Only 50% sewage is treated and only 6% is recycled
•
Household level solid waste coverage of only 53% and only
terms of City GDP placing it higher than all Indian cities
except Delhi, Mumbai, Kolkata and Bangalore.
•
Water supply duration is inconsistent, partial household meter
28% of waste is segregated
•
Creation of the necessary infrastructure and services
Share of public transport at 22% as compared to a best in class
average of 50-80%
to support this growth will require closing the gaps in
•
Road drainage network only 52% of required capacity
several areas.
•
33% of people in PMC live in slums
Budget 2015-16 Per Capita
Capex (Rs.)
7,178
Required Per Capita Annual
Capex (Rs.)
12.6
%
Water &
Sewage
24%
9,418
1.3
%
2.7
%
Solid
Waste
Road
Drainage
16.8
%
Roads
33.2
%
Public
Transport
Budget 2015-16 Per Capita Opex
(Rs.)
7,178
Required Per Capita Annual
Opex (Rs.)
6,960
33.4
%
Slums
Based on the 2010 McKinsey Global
Institute Report ”India’s urban awakening:
Building inclusive cities, sustaining economic
growth”. Population and GDP are projected
figures for year 2030.
Own Revenues
Revenue Receipts (Rs Cr)
40,000
35,000
Own Revenue (Rs
Cr.)
2015-16
Grants & Loans
2015-16 (Rs Cr.)
30,000
25,000
20,000
3,194
15,000
10,000
5,000
2,902
499
1,894
-
Bangalore
Chennai
Figures in Rs Cr
Mumbai
Pune
Estimates for the year 2015-16
Data from 2015-16 municipal budgets
What should we ask for?
Budgets are presented on time, are reasonably detailed and not hugely overestimated
What
Works
Capital expenditure as a % of total expenditure is healthy; so are Own Revenues
compared to both Total revenues and Capital expenditure
Participatory Budgeting a huge plus
Fiscal
Responsibility
What
else
should
we ask
for?
Medium Term Fiscal Plan
Audited Financial Statements
Fiscal
Decentralisation
Own Revenues
Land-based financing
Profession tax
Entertainment tax
Accountability
for Expenditure
for Performance
A Model of Accountability for Expenditure
Ward Quality
Score
Works
Budgets
Infra &
Services
Urban Capacities and Resources
ASICS- UCR Score
ASICs-UCR Financial Management Score
5.6
4.8
3.8
1.4
1.9
Bangalore
3.5
2.5
2.1
4
3.9
3.3
3.2
2.3
1.5
Chennai
Hyderabad
Jaipur
Mumbai
ASICS UCR - Financial Management Parameters
Is the ULB empowered to set and collect the following taxes? << pertains to Fiscal Autonomy
Property tax
14th FC recommends States to
Entertainment tax
help ULBs enhance the scope of
Profession tax
these 4 revenue sources
Advertisement tax
What is the Percentage of Own Revenues to Total Expenditure for the ULB?
Pune
Surat
Pune’s Performance
Y
N
N
N
96.36
Is the ULB authorised to raise borrowings without State Government/ Central Government
approval? << pertains to Fiscal Autonomy
N
Is the ULB authorised to make investments or otherwise apply surplus funds without specific State
Government/ Central Government approval? << pertains to Fiscal Autonomy
Y
What is the Per Capita Capital Expenditure of the ULB? Taking Mumbai as 10.
4,010
Is the budget of the ULB realistic? Is difference between Budget and Actual <15%?
N
Is the ULB required by law to have a Long-Term and/or Medium-Term Fiscal Plan ?
N
4
2.7
2.9
3.6
3.5
Bangalore
Transparency, Accountability and Participation
3.1
4.4
Transparency, Accountability and Participation
Chennai
Hyderabad
Jaipur
Mumbai
Pune
Surat
ASICS TAP – Financial Parameters
Pune’s Performance
Is the State PDL compliant with the Model PDL with respect to:
• Audited financial statement on quarterly/annual basis?
• Details of plans, income and budget
Y
Y
Has the ULB adopted open data standards and principles in respect of:
• Financial information (budgets) of the corporation and of respective wards.
• Quarterly audited financial reports
Is the ULB required by its Municipal Act to carry out an Internal Audit within a predetermined frequency, at
least annual?
Are the annual accounts of the ULB mandated to be audited by an independent/external agency?
Are the internal audits and audited annual financial statements of the ULB available in the public
domain?
Does the governing legislation of the ULB require the auditor to submit its report to the Council and/or the
State Legislature?
Does the ULB have a participatory budgeting process in place?
N
N
Y
N
N
Y
Y