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PUNE MUNICIPAL
CORPORATION BUDGET 2015-16
BU
DG
ET
AN
AL
YS
I S A
ND
SI M
PL
I FI C
AT
I ON
BY
JA
NW
AN
I , S
UP
PO
RT
ED
BY
MC
CI A
In association with
BUDGET MAKING PROCESS
Administrative ward
15 administrative wards prepare their budget
DepartmentsThe 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 BodyIt is the final authority to approve the
budget
PUNE
BUDGET 2
015-
16
<I N
SE
RT
SE
CT
I ON
TI T
L E H
ER
E>
<Insert section description here>
COMPONENTS OF THE BUDGET
Revenue IncomeIncome that is recurring in
natureAll receipts are considered as
revenue incomes by PMC.Eg. Rents, grants, fees and
charges
Capital IncomeIncome that is non recurring or
one timePMC does not account any income as capital income
Eg. Sale of land, lease of land
Revenue ExpenditureExpenditure that is recurring
Eg. Salaries, O&M
Capital ExpenditureExpenditure that is non
recurring and massive in terms of amount.
Eg. Acquisition of land, purchase of real estate,
construction of buildings.
PMC Budget
Even income coming from sale of land, development charges is accounted as revenue income by PMC.
2015-16 PMC BUDGET
2015-160
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Revenue Income (B.E)4,480
Capital income; 0
Am
ou
nt
in R
s. C
r
Revenue Side
Expenditure Side
2015-160
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
Revenue Ex-penditure(BE)
2,240
Capital Ex-penditure(BE)
2,240Am
ou
nt
in R
s. C
r
Note that hence forth all the figures are rounded off to the nearest 100.
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
3200 32503630
4170 41504480
2340
27802960 2980
Budget estimates Actuals
TRENDS IN PMC BUDGET
27%
14.5%18.5%
Over the past 4 years, actuals have been 70-75% of the budget estimates.Average annual increase of 6% in both Budget and Actuals
40%
BREAK UP OF REVENUE INCOMEB U D G E T E S T I M A T E S A C T U A L S
• ~77 percent of the BE• Own source income mostly from
development charges
2010-11 2011-12 2012-13 2013-14 2014-15 2015-160
500
1000
1500
2000
2500
3000
3500
4000
4500
912.01253.5
1457.51657.5
45.0 0.0
0.0
0.0
0.0
0.0
1394.8 1495.6
469.8
495.3
533.3
597.5735.0
927.9
244.7
233.2
192.1
188.0202.5
322.5
335.2
525.0
596.0
799.6 899.8
744.1
414.5
308.7
341.5
373.2 425.2
490.5
516.7
420.4
312.6
351.7347.7
299.0
300.0
0.0
200.0
200.0 100.0
200.0
2010-11 2011-12 2012-13 2013-14 0
500
1000
1500
2000
2500
3000
941.0 1093.3 1148.8
3.0
0.00.0 0.0
1030.8
293.7378.6 444.1 536.6135.6
127.1153.1 130.8583.7
609.0620.3 610.5249.3
237.3357.5 396.4
131.9
331.3
238.3 265.1
0.0
0.00.0 0.0
Octroi Local Body TaxProperty Tax Water TaxOwn Source Income OthersGrants Loans
All figures in crores
1. OCTROI/ LBT
For 2014-15, revised estimates are same as budget estimates
2010-11(BE)
2011-12(BE)
2012-13(BE)
2013-14(BE)
2014-15(BE)
2015-16 (BE)
910
1250
1460
1660
1440 1500
Octroi/ LBT
BUDGET ESTIMATES ACTUALS
2010
-11(
Actua
ls)
2011
-12(
Actua
ls)
2012
-13(
Actua
ls)
2013
-14
(Act
uals)
9401090 1150
1030
Octroi/LBT
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
For 2014-15, revised estimates are same as budget estimates
290
380440
540Property Tax
2010
-11(
BE)
2011
-12(
BE)
2012
-13(
BE)
2013
-14(
BE)
2014
-15(
BE)
2015
-16
(BE)
470 500 530600
740
930Property Tax
BUDGET ESTIMATES ACTUALS
6% hike
10% hike
Collection Efficiency is just 35% implying lots of untapped potential for more revenue
3. BUILDING AND DEVELOPMENT CHARGES
Actuals have remained relatively flat despite boom in real estate construction
For 2014-15, revised estimates are same as budget estimates
2010
-11(
Actua
ls)
2011
-12(
Actua
ls)
2012
-13(
Actua
ls)
2013
-14
(Act
uals)
580
610620
610
Development charges and building per-missions
2010-11(BE)
2011-12(BE)
2012-13(BE)
2013-14(BE)
2014-15(BE)
2015-16 (BE)
340
530600
800
900
740
Development charges and Builing permissions
BUDGET ESTIMATES ACTUALS
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
B U D G E T E S T I M A T E S A C T U A L S
Major expenditure is on salary of employees followed by others.
Actuals are ~90% of estimates. (quite realistic)
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
0
500
1000
1500
2000
2500
514.0 573.9683.0
818.7 832.0
1239.5128.8131.9
148.7
168.3 164.5
161.0
5.15.3
6.4
6.5 9.1
12.1
452.8538.8
666.7
785.9 745.3
658.4
0.0
0.0
98.1
80.2 66.6
54.6
75.6
58.3
91.0
93.751.3
83.6
32.336.8
38.4
36.432.4
30.9
2010-11 2011-12 2012-13 2013-140
200
400
600
800
1000
1200
1400
1600
1800
598.15 658.5747.8 822.24
111.4129.7
147.3165.66
5.15.3
6.46.47
370.35
442.7
544.6
644.66
0
0
24.5
55
38.7
38.2
40.2
38.55
17.4
21.2
24.5
26.92
Salary O&MDepreciationOtherWorks to be done by ward office
1. SALARY
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
For 2014-15, revised estimates are same as budget estimates
2010-11 Actuals
2011-12 Actuals
2012-13 Actuals
2013-14 Actuals
600660
750820
Salary
B.E B.E B.E B.E B.E B.E2010-
112011-
122012-
132013-
142014-
152015-
16
510570
680820 830
1240
Salary
BUDGET ESTIMATES ACTUALS
44 percent of
estimate revenue
expenditure spent on salaries
4.7 lakhs per head employee
salary
47 percent of actual revenue
expenditure spent on salaries
4.6 lakhs per head employee
salary
2013-14 Actuals
2014-15 RE
*Note that simple average method is used to calculate per head salary
2014-15
2. OPERATION AND MAINTENANCE
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
For 2014-15, revised estimates are same as budget estimates
BE BE BE BE BE BE2010-
112011-
122012-
132013-
142014-
152015-
16
130 130150
170160 160
O&M
BUDGET ESTIMATES ACTUALS
2010-11 2011-12 2012-13 2013-14
110
130
150
170O&M
CAPITAL EXPENDITURE
BUDGET ESTIMATES ACTUALS
2010-11
2011-12
2012-13
2013-14
2014-15
2015-16
1990
1900 1900
2180
2250 2240
Capital Expenditure
2010-11 2011-12 2012-13 2013-14
700
1230 1250
1410
Capital Expenditure
VARIANCE IN CAPITAL EXPENDITURE
Note that PMC does not provide break down of actuals.
Major expenditures are on Roads, Water and Sewerage, and JNNURM projectsConsistently over estimated by 35% or more
Bu
dg
ete
d
Actu
als
Bu
dg
ete
d
Actu
als
Bu
dg
ete
d
Actu
als
Bu
dg
ete
d
Actu
als
Bu
dg
ete
d
Bu
dg
ete
d
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
2000
700
1900
1200
1900
1300
2200
1400
2200 2200
65%
35%
34%
35%
FUNCTI
ONAL ANALY
SIS
I NC
OM
E A
ND
EX
PE
ND
I TU
RE
RE
VI E
W A
S P
ER
F UN
CT
I ON
S O
F PM
C
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.
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.
Public health, Burials and burial grounds;
cremations, cremation grounds and electric crematoriums.
Sanitation conservancy and solid waste management. – 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.
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
Planning and Regulation
Urban Poverty Alleviation & Social Welfare
Urban Forestry, recreational infrastructure & Culture
Other Services & support functions
Public Works and civic amenities
Public Health
REVENUE INCOME BY FUNCTION
Actual Actual Actual Actuals Revised Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
1146 1346 1518 1471
2035 2046
548548
540 781
882 984
296334
592 349
697723
7689
102 91
185
315 Other Services and Support Functions
Public Education
Urban Poverty Alleviation and Social Welfare
Urban Forestry, Recre-ational Infrastructure & Culture
Public works & Civic Amenities
Sanitation and Solid Waste Management
Public Health
Water & Sewerage Service
Planning and Regulation
General Administration and Tax Collection
Share of tax collection is highest
Second highest is from planning and regulation
Third highest share is from water and sewerage service.
In Rs Cr
REVENUE EXPENDITURE BY FUNCTION
General administration shares ~25-30% of expenditure.
Water and sewerage shares ~17-19% of expenditure
Public education shares ~17-19%
Actuals Actuals Actuals Actuals Revised Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
297 311 358 279404
63228 28 3764
62
84
209 234267 317
318
354
90 104123 155
143
162
137156
182 202220
262
140179
280 265
324
322
1517
28 32
36
34
203
243
264 296
345
340
10
11
1314
16
17 Other Services and Support Functions
Public Education
Urban Poverty Alleviation and Social Welfare
Urban Forestry, Recre-ational Infrastructure & Culture
Public works & Civic Amenities
Sanitation and Solid Waste Management
Public Health
Water & Sewerage Service
Planning and Regulation
General Administration
In Rs Cr
SALARY TRENDS- FUNCTIONAL WISE
Actuals Actuals Actuals Actuals Revised Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
117 104 134 132 11021819 21
24 29 28
34
45 5257 95
60
123
50 5962
7473
91
124 141155
170174
200
4753
61
6566
85
1724
23
271
28
188
910
12
13
15
15
Other Services and Support Functions
Public Education
Urban Poverty Alleviation and Social Welfare
Urban Forestry, Recre-ational Infrastructure & Culture
Public works & Civic Amenities
Sanitation and Solid Waste Management
Public Health
Water & Sewerage Service
Planning and Regulation
General Administration
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
CAPITAL EXPENDITURES BY FUNCTION
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. (reason- decentralized waste management plants)
2010-11 BE
2011-12 BE
2012-13 BE
2013-14 BE
2014-15 BE
2015-16 BE
5 0 0 28 6 19
702529 523 486 603 505
249
269 317 393378
369
24
67 41 3954
36106
62 6460
62117
721
710 677790
747 772
84129 114
166 143 1427178 74
80 83 1166463 71
96 134 130
Other Services and Support FunctionsPublic EducationUrban Poverty Alleviation and Social WelfareUrban Forestry, Recre-ational Infrastructure & CulturePublic works & Civic AmenitiesSanitation and Solid Waste ManagementPublic HealthWater & Sewerage ServicePlanning and RegulationGeneral Administration
In Rs Cr
DEPART
MENT
ANALYSIS
WA
TE
R,
ED
UC
AT
I ON
, P
UB
L I C H
EA
LTH
, S
L UM
I MP R
OV
EM
EN
T
PRIORITIES- DEPARTMENT WISE
Sr. No Department
Revenue Expenditu
re
Capital Expendit
ureTotal
% 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
2010-11 2011-12 2012-13 2013-14 2014-15 2015-160
50
100
150
200
250
300
350
400
450
Revenue Income (Actuals) Revenue Expenditure (Actuals) Capital Expenditure (Actuals)Revenue Income (BE) Revenue Expenditure (BE) Capital Expenditure (BE)
In R
s
Cr
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.
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
Actuals Actuals Actuals Actuals Budgeted Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
100 100 100 100 100
200
100 100
200 200 200 200200
300
200
300
600 600
Revenue Income Revenue Expenditure Capital Expenditure
Income and revenue expenditure show a flat trend
SANITATION AND SOLID WASTE MANAGEMENT
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
Actuals Actuals Actuals Actuals Budgeted Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
20 20 20 10 20 30
140160
180200
220
260
Revenue Income Revenue Expenditures
BE BE BE BE BE BE2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
110
60 60 60 60
120
Capital Expenditures
SANITATION AND SOLID WASTE MANAGEMENT
Budget 2015-16
Quantity of garbage collected = 1500 – 1600 tones
Revenue expenditure = 260 CrCapital Expenditure = 120 CrTotal 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
REVENUE INCOME (Rs.cr)
2010-11Actuals
2011-12Actuals
2012-13Actuals
2013-14Actuals
2014-15RE
2015-16BE
Government Grants
50 60 60 70 70 72
PRIMARY EDUCATION
Income for Primary Education department is through government grants Major Revenue Expenditures (2015-16) are in the form of:
Capital Expenditures (2015-16) are in the form of various development works (68%) in the schools followed by provisions for incomplete work (25%)
Salaries Dearness Allowance Pension
32% 25% 21%
Number of schools
Number of students
Students per school
275 84191 300
Total expenditure = 320 crExpenditure per school = 1.2 crAnnual Exp per child =38,000
SECONDARY EDUCATION
Total expenditure on Secondary Education = Rs. 54 crNumber of Secondary Schools = 16Expenditure per school = Rs. 3.4 cr
REVENUE INCOME (Rs.cr)
2010-11Actuals
2011-12Actuals
2012-13Actuals
2013-14Actuals
2014-15RE
2015-16BE
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
The major revenue expenditures (2015-16) are on:
The capital expenditure (2015-16) is for construction of toilets- Amount is 3 lakhs. (only one head)
Income for Secondary Education department is through government grants
Salaries PMPML bus service
50% 27%
PUBLIC HEALTH
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.
2010-11 2011-12 2012-13 2013-14 2014-15 2015-160
200
400
600
800
1,000
1,200
1,400
1,600
26.5 32.0 36.6 37.1 90.0 90.0
297.8 228.8 289.2 233.5276.0 288.0
601.4
24.70.0
0.0
86.5 86.5
50.7
61.7 67.674.3
13.0 14.0
344.5
357.1412.3 475.2
520.0700.0
Health assistance pro-grammes for Members & Employees
Income from Hospitals
Sale of forms
Miscellaneous receipts
Grants and assistance
Fees/ charges/ licence
Birth and Death De-partment
In R
s C
r
Actuals Actuals Actuals Actuals Revised Budgeted
Revenue Income
Budget 2015-16Total Revenue Expenditure = Rs. 161.5 crTotal 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
Revenue Expenditure (2015-16)
Capital Expenditure (2015-16)
Salaries Material purchase
Grants/ assistance to weaker sections
56.4% 23% 10%
Development works in hospitals
Provisions for incomplete works of previous years
Development of crematoriums
48% 26% 25%
PUBLIC HEALTH
SLUM IMPROVEMENT
2015
-16
BE
2014
-15
BE
2013
-14
Actua
ls
2012
-13
Actua
ls
2011
-12
Actua
ls
2010
-11
Actua
ls0
200
400
600
800
1000
1200
1400
1600
1800
2000
5.5 11.5 51.5 4.16516 1.21963 1.71386
410
100 10085
200
1450
250404
197.86194
211.53997
189.08029
947.95
743.85
Sevice charges
Photo pass receipts
Miscellaneous
Housing scheme
Health assis-tance scheme
Grants
Fees/charges/ license
In R
s C
r
Revenue Income
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
2010-11 Actual
2011-12 Actual
2012-13 Actual
2013-14 Actual
2014-15 BE 2015-16 BE0.0
500.0
1000.0
1500.0
2000.0
2500.0
3000.0
3500.0
0.0 115.6 147.8 146.3182.8 236.0
0.02.3
3.9 8.9
204.0 124.0860.3
953.41062.8
1175.5
1217.01589.5
258.0206.7
213.6251.7
276.3
228.1
0.00.0
646.7
680.9
1077.0891.8
Ward office works
Toilet repairs
School repairs
Scheme implementation
Salary
Road repairs
Miscellaneous
Material expenses
Honanarium
Grant/ assistance
Electricity expenses
Drainage repairs
Babasaheb Ambedkar Hostel expenses
In R
s C
r
SLUM IMPROVEMENTRevenue Expenditures
~60% is spent of salaries
~30% on ward office works
~10-15% on toilet repairs
Percentages relate to actuals
SLUM IMPROVEMENT
38%
51%
7%
1% 2%
Construction of Toilets
Development works
Improvements in Dalit vasti
SRA
CAPITAL EXPENDITURES (2015-16)
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.
91 crores are allocated for slum improvement in 2015-16 Budget, which is 2 % of the total budget
51% is allotted to development of works39% for construction of toilets
URBAN TRANSPORT FUND (NOT A
DEPARTMENT)
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.
Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
590
420 390 380 410 440
100 110220 250 220
310
990
840 810
630
940 940
Revenue Income Revenue Expenditure Capital Expenditure
OBSERVATIONS ON THE BUDGET DOCUMENT
45 revenue income heads58 revenue expenditure heads18 capital expenditure heads
No one-on-one connection between revenue heads and cost 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.
SOCIAL D
EVELOPM
ENT
FUNDS
WO
ME
N A
ND
CH
I LD
DE
VE
L OP M
EN
T
F UN
D,
BA
CK W
AR
D C
L AS
S F
UN
DS
WOMEN AND CHILD DEVELOPMENT FUND- L BUDGET
5 percent of expenditures, after deduction of committed
expenditures, should be towards women and child development fund
Major expenditures are towards education of children followed by slum improvement till 2014-15. In 2015-16,major expenditure is towards
PMPML (55%)
2010-11 Bud-geted
2011-12 Bud-geted
2012-13 Bud-geted
2013-14 Bud-geted
2014-15 Bud-geted
2015-16 Bud-geted
% 0f total
0.0313100341040643
0.0392054203880505
0.0450399119185247
0.0458428314337133
0.0392578313253012
0.0215939278937381
1%
2%
3%
4%
5%
Perc
en
tage o
f to
tal
bu
dget
Falling trend in L Budget allocations.
~80-90% is in the form of revenue expenditures.
Year on year growth is (-) 1%
Note: Actuals are not available
BACKWARD CLASS FUND – ‘B’ BUDGET
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
2010-11 Bud-geted
2011-12 Bud-geted
2012-13 Bud-geted
2013-14 Bud-geted
2014-15 Bud-geted
2015-16 Bud-geted
% 0f to-tal Budget
0.021654516441
9136
0.029220819217
7395
0.029143958161
2992
0.026243551289
7421
0.042354216867
4699
0.052354057372
4746
1%2%3%4%5%6%
Perc
en
tag
e o
f to
tal
bu
dget
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%.
Note: Actuals are not available
URBAN POOR BUDGET – P BUDGET
Budgeted Budgeted Budgeted Budgeted Budgeted Budgeted2010-11 2011-12 2012-13 2013-14 2014-15 2015-16
0
200
400
600
800
1000
1200
1400
Revenue Expenditure Capital Expenditure
Am
ou
nt
in C
r
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.
~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
Budget Per Capita & Quality of Budget Estimates
City Bangalore
Chennai Jaipur SuratHyderaba
dMumbai 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
Data from municipal budgets
Bangalore
Chennai
Jaipur
Surat
Hyderabad
Mumbai
Pune
6,730
4,471
1,214
4,560
5,550
35,347
4,479
2,927
4,432
1,083
4,020
4,599
4,150
Payments
Revised 2014-15 (Rs Cr)
Budget 2015-16 (Rs Cr)
Bangalore
Chennai
Jaipur
Surat
Hyderabad
Mumbai
Pune
6,730
4,447
1,217
3,598
6,396
35,347
4,479
2,894
3,960
1,115
3,205
5,688
4,150
Receipts
Revised 2014-15 (Rs Cr)
Budget 2015-16 (Rs Cr)
11%
8%
11%
57%
7%
11%
7%
17%
12%
11%
1%
56%
Bangalore Chennai Surat Hyderabad Mumbai Pune
8
25 19 17
32 28
25
27
20 14
35
22
67
48
62 69
33
50
Capex Other Expenses Salaries
Proportion of Capital Expenditure
Figures in %Estimates for the year 2015-16
Rs 2,240
Cr
Rs985Cr
Rs1,254
Cr
Data from municipal budgets
Capex Budget vs Capex Requirement
• Water supply duration is inconsistent, partial
household meter coverage.
• Only 50% sewage is treated and only 6% is
recycled
• Household level solid waste coverage of only
53% and only 28% of waste is segregated
• Share of public transport at 22% as compared
to a best in class average of 50-80%
• Road drainage network only 52% of required
capacity
• 33% of people in PMC live in slums
Required Per Capita Annual Capex (Rs.) 9,418
Budget 2015-16 Per Capita Capex (Rs.) 7,178
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.
12.6%
1.3%
2.7%
16.8%
33.2%
33.4%
• Pune with a projected 2030 Population of 10
million will be the 5th most populous city in
India
• It will contribute USD 76 billion (Rs. 4,56,000
Cr) in terms of City GDP placing it higher than
all Indian cities except Delhi, Mumbai, Kolkata
and Bangalore.
• Creation of the necessary infrastructure and
services to support this growth will require
closing the gaps in several areas.
Water &
Sewage
Solid Waste
Road Draina
geRoads
Public Transp
ortSlums
Required Per Capita Annual Opex (Rs.) 6,960
Budget 2015-16 Per Capita Opex (Rs.)
7,178
24%
Bangalore Chennai Mumbai Pune -
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
2,902 1,894
3,194
499
Revenue Receipts (Rs Cr)
Own Revenue (Rs Cr.)2015-16
Own Revenues
Estimates for the year 2015-16
Figures in Rs Cr
Data from 2015-16 municipal budgets
What should we ask for?
Budgets are presented on time, are reasonably detailed and not hugely overestimatedCapital expenditure as a % of total expenditure is healthy; so are Own Revenues compared to both Total revenues and Capital expenditureParticipatory Budgeting a huge plus
What Works
Fiscal Responsibility
Medium Term Fiscal Plan
Audited Financial Statements
Fiscal Decentralisation
Own Revenues Land-based financing
Profession tax
Entertainment tax
Accountability
for Expenditure
for Performance
What else should we ask for?
A Model of Accountability for Expenditure
Infra & Services
Ward Quality Score
Works
Budgets
Bangalore Chennai Hyderabad Jaipur Mumbai Pune Surat
1.4
2.11.5
2.3
4
3.3 3.2
1.9
3.8
2.5
3.5
5.6
3.9
4.8
ASICS- UCR Score ASICs-UCR Financial Management Score
Urban Capacities and Resources
ASICS UCR - Financial Management ParametersPune’s Performance
Is the ULB empowered to set and collect the following taxes? << pertains to Fiscal Autonomy
Property tax YEntertainment tax NProfession tax NAdvertisement tax N
What is the Percentage of Own Revenues to Total Expenditure for the ULB?
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
14th FC recommends States to help ULBs enhance the scope of these 4 revenue sources
Transparency, Accountability and Participation
Bangalore Chennai Hyderabad Jaipur Mumbai Pune Surat
4.4
3.1 4
2.7 2.9 3.6
3.5
Transparency, Accountability and Participation
ASICS TAP – Financial ParametersPune’s
Performance
Is the State PDL compliant with the Model PDL with respect to:
• Audited financial statement on quarterly/annual basis?Y
• Details of plans, income and budgetY
Has the ULB adopted open data standards and principles in respect of:
• Financial information (budgets) of the corporation and of respective wards. N
• Quarterly audited financial reports NIs the ULB required by its Municipal Act to carry out an Internal Audit within a predetermined frequency, at least annual? YAre the annual accounts of the ULB mandated to be audited by an independent/external agency? NAre the internal audits and audited annual financial statements of the ULB available in the public domain? NDoes the governing legislation of the ULB require the auditor to submit its report to the Council and/or the State Legislature? Y
Does the ULB have a participatory budgeting process in place? Y
DISCUSSIONS AND Q&A