Odisha civic bodies still depend on government funds

Major urban bodies in Odisha are yet to be financially self-sufficient and extensively depend on government grants rather than own revenue, claimed a recent study made by social organisation Youth for Social Development (YSD).

This study was based on annual budgets of Bhubaneswar, Cuttack and Berhampur municipal corporations. It may be noted that two urban centres of Odisha, Bhubaneswar and Rourkela, have been included in the Smart City Scheme of Central government.

According to Ratneswar Sahu of the YSD, review of data of Bhubaneswar, Cuttack and Berhampur hints that during recent years dependence of these Urban Local Bodies (ULB) on grants of Central and State government is showing an increasing trend. “This trend is a stumbling block in the path of proper functioning of these ULBs,” said Mr Sahu.

Bhubaneswar Municipal Corporation (BMC) depends heavily on Centre and State governments to enhance its income. As per the findings of the YSD, during the year 2012-13, total income of Bhubaneswar ULB included 53.11 per cent resources received as grant from the government. During 2014-15, BMC had planned to decrease its grant from Central and State governments to 44.60 per cent of its total income. But in its recent budget the Bhubaneswar Municipal Corporation has envisioned to get 64.52 per cent of its total income from the State and Central governments.

Dependence of Berhampur Municipal Corporation (BeMC) on government grants is higher. Funds with the BeMC during 2012-13 included 64 per cent received as grants from government. The 2014-15 budget estimate of Berhampur ULB showed that it had planned to get 83.75 per cent of its total income from the State and Central governments. In the 2015-16 budget, BeMC has also targeted to 78.88 per cent of its total income from government.

Similar is the situation for Cuttack Municipal Corporation (CMC). During 2012-13 total income of CMC included 50.30 per cent funds received as grants from government. In 2014-15 budget this ULB had decided to have 61.64 per cent of its income as grants from Central and state government.