Tweaked accounting procedure helps Corporation show surplus in budget

  • | Thursday | 23rd March, 2017

| Photo Credit: S_ SIVA SARAVANANA change in accounting procedure has helped the civic body present a surplus budget for 2017-18. Corporation Commissioner and Special Officer K. Vijayakarthikeyan releasing the 2017-18 budget copy at the Corporation office on Wednesday. The coming financial years would see the civic body in better financial health. Corporation Commissioner and Special Officer K. Vijayakarthikeyan, who presented the budget in the presence of Deputy Commissioner P. Gandhimathi, Assistant Commissioner-Account R. Senthilkumar and others, said that this year’s budget had accounted the surplus to be ? 13.04 crore. This had helped the Corporation arrived at a realistic revenue picture, Mr. Vijayakarthikeyan said and added that a surplus budget would mean better planning and streamlined spending.

Corporation Commissioner and Special Officer K. Vijayakarthikeyan releasing the 2017-18 budget copy at the Corporation office on Wednesday. Deputy Commissioner P. Gandhimathi is also in the picture. | Photo Credit: S_ SIVA SARAVANAN more-in A change in accounting procedure has helped the civic body present a surplus budget for 2017-18. Corporation Commissioner and Special Officer K. Vijayakarthikeyan, who presented the budget in the presence of Deputy Commissioner P. Gandhimathi, Assistant Commissioner-Account R. Senthilkumar and others, said that this year’s budget had accounted the surplus to be ? 13.04 crore. The budget had accounted the total revenue at ?1,072.42 crore and expenditure at ?1,059.38 crore. Of the ?1,059 crore the Corporation planned to spend in the next financial year, each ward would get only about ?6 crore as the civic body had earmarked ?501 crore for capital expenditure (roads, street lights, etc.) from its fund. It would also get around ?120 crore from the State Government and another ?50 crore from the Central Government. The Corporation would use the remaining to meet its establishment cost - ?150 crore, repay borrowed capital ?7 crore and pay interest on borrowings ?11 crore, the Assistant Commissioner Mr. Senthilkumar said. The civic body had this year adopted the accounting procedure the Commissioner for Municipal Administration had suggested, where its total revenue is calculated based on 100 % of the current year’s tax demands (property tax, water charges and a few non-tax demands) and 70 % of outstanding tax (arrears). This had helped the Corporation arrived at a realistic revenue picture, Mr. Vijayakarthikeyan said and added that a surplus budget would mean better planning and streamlined spending. For the current financial year (2016-17), the Corporation had earlier estimated its revenue and expenditure (budget estimates) to be ? 1,101.70 crore and ?1,178 crore respectively but it had to revise those to (revised estimates) ?874.95 crore and ?958 crore respectively. The downward revision was on account of inflated initial estimates. The budget also revealed the Corporation’s financial health - it owes contractors ?42 crore for the works they had completed and its fall in income from investments - in 2015-16 the Corporation had earned ?72.51 crore and for 2017-18 it would earn a mere ?2.33 crore. Mr. Vijayakarthikeyan said that the Corporation had attempted to present a realistic budget. The coming financial years would see the civic body in better financial health.

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