PUNE MUNICIPAL CORPORATION BUDGET 2015-16 BUDGET ANALYSIS AND SIMPLIFICATION BY JANWANI, SUPPORTED BY MCCIA In association with

PUNE MUNICIPAL

CORPORATION BUDGET 2015-16

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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

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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


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


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


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


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


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


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


BE BE BE BE BE BE2010-

112011-

122012-

132013-

142014-

152015-

16

130 130150

170160 160

O&M


2010-11 2011-12 2012-13 2013-14

110

130

150

170O&M

CAPITAL EXPENDITURE


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

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d

Actu

als

Bu

dg

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Actu

als

Bu

dg

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d

Actu

als

Bu

dg

ete

d

Actu

als

Bu

dg

ete

d

Bu

dg

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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

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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


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





Public Health



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





Public Health



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,

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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%.


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.


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

Documents

PUNE MUNICIPAL CORPORATION BUDGET 2015-16 BUDGET ANALYSIS AND SIMPLIFICATION BY JANWANI, SUPPORTED BY MCCIA In association with