Hubballi-Dharwad Municipal Corporation Budget Soars 38%, Aims High on Property Tax, Infrastructure

Hubballi-Dharwad braced for a significant financial leap as the Hubballi-Dharwad Municipal Corporation (HDMC) revealed a proposed budget of Rs 1,573.48 crore for 2024-25, marking a hefty 38% increase from the current year’s Rs 1,138.54 crore. Presented by Taxation, Finance, and Appeals Standing Committee chairman Mallikarjun Gundur, the budget boasts a projected surplus of Rs 12.71 lakh, but not without its share of questions and controversies.

Ambitious Revenue Goals:

Property Tax: The budget eyes a near-doubling of property tax collection, setting an ambitious target of Rs 250 crore for the next year. Achieving this hinges on bringing all properties under the tax net through a Geographical Information System (GI) survey, expected to rake in an additional Rs 100 crore.

Grant Dependence: HDMC pins its hopes on Rs 643 crore in grants from the Central and State governments to fill the gap between its own revenue generation and projected expenditure.

Spending: Infrastructure in Focus: A whopping Rs 1,038 crore, representing 66% of the total budget, is earmarked for capital expenditure, prioritizing infrastructure development across the city.

Operational Costs: Salary and administrative expenses receive sizeable allocations of Rs 206.99 crore and Rs 155.86 crore respectively.

Opposition Raises Concerns: “Bogus Budget” Claim: Congress party members weren’t impressed, terming the budget “bogus” and citing unfulfilled promises from previous budgets. They expressed skepticism about the feasibility of achieving the projected revenue, raising doubts about the corporation’s ability to deliver on its ambitious plans.

Religious Allocation Sparks Debate: The allocation of Rs 1 crore for specific religious institutions (Mutts) drew objections from the opposition, who questioned the potential discrimination against other religions and even the legality of such a provision in the budget. Clarifications from officials stated that the funds were meant for infrastructure improvements near these Mutts, but the debate is likely to continue.

Ward Development Funds: A Balancing Act: A proposal to increase corporator funds for ward development from Rs 75 lakh to Rs 90 lakh, totaling Rs 75 crore, faced mixed reactions. While some argued for excluding GST from this amount, women members demanded a further increase of Rs 20 lakh for their wards, highlighting the ongoing quest for equitable resource allocation.

Other Highlights of the Budget

• Rs 65 crore expected from NGT compensation and Rs 20 crore under AMRUT-2
• Rs 40 crore to purchase vehicles for mayor and deputy mayor
• Laptops for children of Pourakarmikas and Group-D employees
• Rs 3.5 crore for rejuvenating water bodies of the twin cities
• Rs 10 crore reserved for building a new council hall
• Rs 1.5 crore reserved for setting up vending zones
• Rs 135 crore expected from the Centre for Solid Waste Management
• Financial support to backward families for conducting final rites during death in their family
• Rs 5 crore for developing Zip Line from NrtupatungaBetta to Unkal Lake
• Rs 7 crore crore for the development of villages coming under HDMC limit
• CCTV cameras will be installed in public places
• Rs 5 crore allocated for developing and maintaining parks and gardens
• Rs 9 crore for improving healthcare services in HDMC hospitals