Finance department opposes Rs 6,000-cr grant to Bangalore
While the Chief Minister
The grant of Rs 6,000 crore to
The officials of the
But, there is a pending fund of Rs 9,000 crore according to Bangalore approved
As a result of this addendum, the state government faces an awkward situation to approve the project, without verifying the availability of funds. Many had also blamed this as a publicity stunt earlier as the
At present, it is planned to contract a loan and the project should be implemented in five years instead of three. The finance department suggested taking out a 40% loan from the Karnataka Urban Infrastructure Development and Finance Corporation (
The BBMP in crisis
As per instructions from the finance department, the BBMP is to secure a loan of Rs 2,000 crore from KUIDFC and Rs 1,000 crore from its own resources. But, the finances of the BBMP are already stressed. It faces difficulties in paying the salaries of civil servants and staff and maintenance. Since September 2019, he has retained the balance of Rs 3,229 crore to contractors. Every month, the civic body spends Rs 300 crore on salaries and other purposes. It spends Rs 75 crore on waste management; The 3,500 rupees collected from property taxes are spent on salaries and other expenses. In this situation, the question arises as to how the BBMP will raise the funds.
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