Rs2.38b HMC budget presented

Mayor faces criticism upon unveiling Rs200,000 surplus budget

HYDERABAD: Amid uproar by the Pakistan Peoples Party (PPP)-led opposition and expression of grievances by the ruling party's members, the Muttahida Qaumi Movement (MQM) - Pakistan's mayor of Hyderabad Municipal Corporation (HMC) presented a Rs2.38 billion budget on Monday. The budget for the 2017-18 fiscal year will have a minuscule surplus of less than Rs200,000.

Mayor Syed Tayyab Hussain, though confronted with criticism by his own party members and the PPP's protest walkout, crossed his fingers as he depicted a sketch of his less than one year in office. He said since taking office in September, 2016, he has reformed all segments of the HMC, from revenue generation to expenditures and timely payment of salaries to the staff.

"The last seven to eight years [period from 2009-10 to 2016 when local government system remained under official control] left Hyderabad in ruins. Infrastructure of HMC was in shambles, administrative problems and financial wrongdoings were at their peak," he said.



The mayor took credit for increasing the corporation's revenue by effectively pursuing litigation over the pieces of land in the courts, which resulted in recovery of land or of outstanding dues worth around Rs170 million. He said that the HMC's income from taxes, fees and rent, which stood at around Rs160 million before September, 2016, will be increased to Rs410 million in the upcoming fiscal year.

"The HMC's total revenue generation stood at Rs1.44 billion in 2016-17. It will be increased to Rs2.38 billion in 2017-18," he assured.

Budget figures

The allocation for salaries, pensions and gratuity at Rs1.54 billion will be almost four times higher than the development expenditures for which Rs443.96 million has been proposed. A sum of Rs132 million for construction of buildings, Rs105 million for roads, Rs83.5 million for drainage and Rs22 million for parks, among other development works, have been put forward.



Under the head of expenditure on contingencies, Rs72.6 million has been allocated for miscellaneous expenses, Rs60 million for fuel, Rs58.35 million for repair and maintenance of vehicles and machinery, Rs40 million for purchase of vehicles and Rs22 million for purchase of lights. Another Rs80 million has been set aside for the fire brigade department, which will purchase a snorkel and fire tenders.

HMC's expected revenue receipts include Rs1.24 billion from the Octroi Zila Tax (OZT), Rs360 million OZT special grant from the Sindh government, Rs118.66 million from local taxes, Rs262.15 million from local fees and Rs26.56 million from rent of its properties. The corporation also expects to get Rs224 million from the Sindh government for the OZT that the latter collected from July, 2006 to March, 2012. However, as a member asserted during the meeting, the corporation appears unlikely to get this amount, which may turn its surplus budget into a deficit.



Uproarious session

MQM-Pakistan's union committee chairman Salahuddin, who is also a former MNA, complained that the mayor has failed to form sub-committees for each of the wings functioning under the HMC. The sub-committees are supposed to consist of members in odd numbers who will supervise functioning of each wing.

"We should be told that there is no need for meetings and consultation over the budget. And we will sign the budget with our eyes closed," Salahuddin said.

MQM-Pakistan's UC chairman advocate Aslam Pervez demanded that a time frame should be fixed for debate over the budget. In response to his demand, the mayor requested all the members who wanted to talk during the next session to submit their names.

"The sub committees haven't been formed. We are also not taken into confidence," complained PPP’s Zahida Baloch. The PPP's elected and reserve seat members also staged a walkout but the MQM-Pakistan members brought them back.