MUMBAI: The BMC’s corpus in fixed deposits (FDs) spanned Rs 80,000 crore this season, regardless of the company spending more than 2,000 crore about handling the Covid-19 pandemic.
The FDs are secured in several state-run and a couple of private banks.
As stated by the civic fund division, the BMC obtained an interest of approximately Rs 1,600 crore on its own FDs and the merged number of FDs is currently only over Rs 80,000 crore.
P Velrasu, other municipal commissioner (jobs ), supported the evolution to TOI.
Within this year’s funds, the BMC had dipped to the 50,952-crore FDs connected to the infrastructure development finance for producing mega jobs including Mumbai Coastal Road.
The BMC can be custodian of Rs 26,283 crore FDs which are in workers’ provident fund and retirement accounts.
The civic body generates about Rs 1,800 crore interest each year on FDs.
This past calendar year, the total decreased by Rs 700 crore because of a decrease in curiosity, but at the current fiscal year, the BMC has acquired approximately Rs 1,600 crore interestrates.
This calendar year, BMC commissioner Iqbal Chahal had announced a Rs 39,038-crore funding.
Despite falling earnings and a fall in earnings amid the pandemic, the funding saw a increase of almost 16.7percent from the year’s price of Rs 33,441 crore.
Chahal had confessed the funds expenditure of the civic figure had improved and it was not renewable unless revenue collection new or improved sources of earnings added.
Rather than raising cash from the marketplace , the government dipped to its FDs and required the inner interest-free advance of Rs 10,564 crore to satisfy its increasing cost.
Obviously, Rs 5,876 crore was raised as inner loan from capital kept under 2 divisions.
BMC officials stated Rs 3,500 crore was in the backyard development finance, intended to make long-term resources, also Rs 2,376 crore in the depreciation fund which may be used for funding work.