Kochi Corporation may fail to achieve Plan fund spending target by December
Kochi: The Kochi Corporation, which is facing an unprecedented financial crisis due to loss of various revenue sources in post-GST scenario, will not be able to achieve the state government's instruction to spend 70 per cent of Plan funds by December 31. Of the 900 Plan projects, tenders have been invited for only 236 project proposals.
"Civic body is in deep financial crisis due to scrapping of entertainment tax as part of implementing GST. On an average, the Corporation was getting Rs 11 crore to Rs 13 crore as entertainment tax from cinema theatres and other events conducted in big hotels in the city. With the recent instruction denying the right to collect advertisement tax, the Corporation's existence itself is at stake," said deputy mayor T.J. Vinod during a recent council meeting.
He asked mayor Soumini Jain to appraise the Chief Minister of the current status of Plan projects implementation in Kochi Corporation. "Bills worth Rs 2.5 crore are pending with the treasury," he said. The Corporation contractors refuse to participate in tendering and to execute works citing delay in clearing their dues. The civic administration has to enhance tax collection and to identify other revenue sources to compensate the weakening exchequer.
Entertainment tax, a major revenue source of the local body was registering significant increase over the last few years, with the number of multiplexes in the city is going up. During 2014 - 15, the civic body collected Rs 7.50 crore while it increased to Rs 10.52 crore in 2015-16 and Rs 12.50 crore in 2016 - 17.
