GHMC receives Rs 2000 crore less than sanctioned budget every year

Hyderabad: Every year, Greater Hyderabad Municipal Corporation (GHMC) gets Rs 2000 crore less than the sanctioned budget. These particulars were revealed in the Right to Information reply.

According to the social activists, this is hampering the development works in the GHMC limits.

A retired IFS officer Padmanabha Reddy said GHMC which comprises 30 percent of the state population and yields 70 percent of the civic body income, is deprived of funds. He added that the yearly budget of the GHMC is in distressful condition with no funds available to pay salaries.

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A State Finance Commission (SFC) was formed in 2015 by the Telangana State government. However, its chairperson and members were appointed after a public interest litigation was filed in the high court. The SFC had sent details to the governor in October 2020 after analyzing the financial capacities of the civic bodies. The governor directed the government to take appropriate measures on the suggestions of the State Finance Commission.

Padmanabha Reddy said that the state government has not followed the SFC suggestions.

The civic bodies should get its right share of budget as SFC suggested 11 percent of state income allocated to the civic bodies. He further said that the neighbouring state of Karnataka allocates 48 percent of revenue receipts to local bodies.

As per SFC suggestion, the funds should be distributed in the ratio of 60:40 among the panchayats and urban local bodies as per the 2011 population census. 

The Telangana government financial budget for the 2021-22 is Rs.1.76 lakh crores. If the SFC suggestion is accepted then Rs.20,000 crores should be allocated to the gram panchayats and urban local bodies besides allowances from the central government.

Reddy said that the central government sanctions Rs.1,365 crores to the gram panchayat annually whereas the state government also distributes similar amount i.e approximately Rs.114 crores monthly to gram panchayats.

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