LDA expects increased revenue
LDA increases this year’s budget projection for development revenue to Rs1.82 billion.
LAHORE:
The Lahore Development Authority (LDA) has increased this year’s budget projection for development revenue to Rs1.82 billion, up from Rs1.17 billion last year, though it only managed to collect Rs0.361 billion in 2009-10.
The total expenditure in the Lahore Development Authority (LDA) 2010-11 budget is set at Rs6.27 billion and total revenue at Rs3.65 billion. The shortfall – Rs2.62 billion – is to be financed by last year’s balance of Rs3.76 billion.
Non-development revenue
The LDA’s non-development revenue includes rents, fines and fees.
The income projection for this year is Rs477 million – Rs188 million more than last year’s projection of Rs289 million. The actual revenue collected last year was Rs1.423 billion.
Non-development receipts are projected at Rs1.7 billion. These include general revenue receipts projected at Rs1.56 billion, mark up on bank deposits, rent of land and buildings and recovery of loans and advances. Some of the major general revenue receipts include commercialisation fees, plot transfer fees, fees on plan submission and extension of building period, fines, and deposits for demolition of unauthorised structures from owners. Urban immovable property tax income for the year is estimated to be Rs517 million. The figure was Rs92 million last year, while it was projected at Rs215 million.
The fines, penalties and fees targets were not met last year, creating a shortfall in the budget projections.
The LDA intends to collect Rs100 million in deposits from the owners of illegal/unauthorised buildings to be demolished this year. The budget estimate for these deposits last year was set at Rs150 million. The actual amount collected by the authority was Rs11 million.
The mark-up on bank deposits is projected to earn Rs30 million this year – a tenth of last year’s.
Development Revenue
The LDA’s development revenue comes from the sale of land, flats and buildings, development charges and recovery of loans from the Water and Sanitation Agency (WASA).
The revenue is expected to increase to Rs1.82 billion, up from last year’s target of Rs1.17 billion, though actual revenue collection was Rs0.361 billion. The authority is expected to generate Rs3.45 billion from the sale of land, approximately the same as last year. The target for the sale of flats was not met last year.
The Annual Development Programme and government grants and deposits works are Rs233.5 million this year – Rs95 million more than last year’s Rs138.8 million.
Non-development expenditure. Non-development expenditure has dropped from last year’s target of Rs2.2 billion to Rs2.01 billion this year. The fall is due to the substantial drop in miscellaneous expenses including LDA pension funds, which fell from Rs392.6 million to Rs127.5 million.
The funds transferred to the non-development budget were Rs665 million. This year’s total development budget is estimated at Rs443 million.
Development Expenditure
The development expenditure for this year is estimated at Rs4.01 billion.
It includes Rs1.24 billion for spending on flats and buildings – Rs0.17 billion more than last year. The LDA has allocated Rs147 million for the construction of new flats and buildings, including the Mian Nawaz Sharif Sports Complex in Gujjarpura, a low-income area.
The budget allocation for housing schemes is Rs825 million, Rs121 million more than last year’s Rs704 million.
The LDA set aside Rs665 million for the Lahore Road Rehabilitation Programme, Rs146.2 million less than last year’s Rs811.2 million. The LRRP includes funds for maintenance and repair of major city roads such as Madar-e-Millat Raod.
Published in The Express Tribune, October 13th, 2010.
The Lahore Development Authority (LDA) has increased this year’s budget projection for development revenue to Rs1.82 billion, up from Rs1.17 billion last year, though it only managed to collect Rs0.361 billion in 2009-10.
The total expenditure in the Lahore Development Authority (LDA) 2010-11 budget is set at Rs6.27 billion and total revenue at Rs3.65 billion. The shortfall – Rs2.62 billion – is to be financed by last year’s balance of Rs3.76 billion.
Non-development revenue
The LDA’s non-development revenue includes rents, fines and fees.
The income projection for this year is Rs477 million – Rs188 million more than last year’s projection of Rs289 million. The actual revenue collected last year was Rs1.423 billion.
Non-development receipts are projected at Rs1.7 billion. These include general revenue receipts projected at Rs1.56 billion, mark up on bank deposits, rent of land and buildings and recovery of loans and advances. Some of the major general revenue receipts include commercialisation fees, plot transfer fees, fees on plan submission and extension of building period, fines, and deposits for demolition of unauthorised structures from owners. Urban immovable property tax income for the year is estimated to be Rs517 million. The figure was Rs92 million last year, while it was projected at Rs215 million.
The fines, penalties and fees targets were not met last year, creating a shortfall in the budget projections.
The LDA intends to collect Rs100 million in deposits from the owners of illegal/unauthorised buildings to be demolished this year. The budget estimate for these deposits last year was set at Rs150 million. The actual amount collected by the authority was Rs11 million.
The mark-up on bank deposits is projected to earn Rs30 million this year – a tenth of last year’s.
Development Revenue
The LDA’s development revenue comes from the sale of land, flats and buildings, development charges and recovery of loans from the Water and Sanitation Agency (WASA).
The revenue is expected to increase to Rs1.82 billion, up from last year’s target of Rs1.17 billion, though actual revenue collection was Rs0.361 billion. The authority is expected to generate Rs3.45 billion from the sale of land, approximately the same as last year. The target for the sale of flats was not met last year.
The Annual Development Programme and government grants and deposits works are Rs233.5 million this year – Rs95 million more than last year’s Rs138.8 million.
Non-development expenditure. Non-development expenditure has dropped from last year’s target of Rs2.2 billion to Rs2.01 billion this year. The fall is due to the substantial drop in miscellaneous expenses including LDA pension funds, which fell from Rs392.6 million to Rs127.5 million.
The funds transferred to the non-development budget were Rs665 million. This year’s total development budget is estimated at Rs443 million.
Development Expenditure
The development expenditure for this year is estimated at Rs4.01 billion.
It includes Rs1.24 billion for spending on flats and buildings – Rs0.17 billion more than last year. The LDA has allocated Rs147 million for the construction of new flats and buildings, including the Mian Nawaz Sharif Sports Complex in Gujjarpura, a low-income area.
The budget allocation for housing schemes is Rs825 million, Rs121 million more than last year’s Rs704 million.
The LDA set aside Rs665 million for the Lahore Road Rehabilitation Programme, Rs146.2 million less than last year’s Rs811.2 million. The LRRP includes funds for maintenance and repair of major city roads such as Madar-e-Millat Raod.
Published in The Express Tribune, October 13th, 2010.