Water Supply Problem Water Is the Lifeline of All Living Beings, but Its Availability Is Totally Dependent on the Quantum of Seasonal Rains

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Water Supply Problem Water Is the Lifeline of All Living Beings, but Its Availability Is Totally Dependent on the Quantum of Seasonal Rains B U D G E T E S T I M A T E S A , B & G 2010-11 Mr. Chairman, I am presenting to the Standing Committee, the estimates of receipt and income and expenditure pertaining to the Budgets ‘A’, (Fund code 11, 12, 60, 70), ‘B’ (Fund code 21, 22, 23) and ‘G’ (Fund code 40) for the financial year 2010-11 in pursuance of the provisions of Sections 125 and 126 E of M.M.C. Act 1888. I am profoundly delighted to present Budget Estimates of Brihanmumbai Mahanagarpalika as the Municipal Commissioner for the first time. When I took over as chief of the Municipal administration of the Municipal Corporation of Greater Mumbai, which is one of the foremost in not only the Nation, but across the globe, I had to face two very stiff challenges. One, the drinking water crisis faced by Mumbaikars due to scant rainfall and second the critical financial position of the M.C.G.M. Water Supply Problem Water is the lifeline of all living beings, but its availability is totally dependent on the quantum of seasonal rains. The daily average requirement of water of the city of Mumbai is 3400 million litres. However, barring 4 days in August 2009, the rains had turned their back on the entire Maharashtra. As a result, this year, the reservoirs like Tansa, Vaitarna, Bhatsa, Upper Vaitarna, Vihar etc. did not reach the desired levels which normally overflow in the mid of August every year. An attempt was made to induce artificial rain in the catchment area from August 23 to October 22, 2009. In the meantime, due to natural rainfall and the artificial rainfall, water levels in Tansa and Modak Sagar increased to a certain extent, but due to absence of rains thereafter, the water level in the Bhatsa, Upper Vaitarna and Vihar did not rise to the expected levels. MUNICIPAL CORPORATION OF GREATER MUMBAI 1 B U D G E T E S T I M A T E S A , B & G 2010-11 Though there have been non seasonal rains in October / November in the state, the Mumbai region was devoid of any rains. Due to the rains having disappeared since October, a stiff challenge of supplying water to the entire city till the end of July-2010 has arisen. Taking the gravity of the water problem into account, wardwise meetings were organized between the Councillors, Administrative Officers and the Citizens to create awareness. The media also has taken note of the intensity of this problem which is increasing day by day and has helped in creating awareness to the great deal, through news, articles, etc. In the meantime, barring one or two unpleasant incidents in the agitations on the water supply problem, the average Mumbaikars have been extremely patient and understanding. It wouldn’t be out of place to mention here, that the citizens of Mumbai have developed a psyche to stoically deal with this natural calamity. Considering the current availability of water reserves and keeping in mind the dire need of preserving these reserves till the forthcoming rains, the administration has decided on reduction in water supply and all the councilors have consented to it. Taking the note of the water supply problem in Mumbai, the Govt. of Maharashtra has made available 199 TMC water to Mumbai City. I express my sincere gratitude to the citizens of Mumbai, Govt. of Maharashtra and all the Councillors of Brihanmumbai Mahanagarpalika for their support in handling the water crisis of Mumbai till the date. Financial position of M.C.G.M. While presenting the Budget Estimates for the year 2009-10 to the Standing Committee, the then M.C. had elaborated on the present and the future financial position of the MCGM. At that time, it was pointed out MUNICIPAL CORPORATION OF GREATER MUMBAI 2 B U D G E T E S T I M A T E S A , B & G 2010-11 that the global recession might adversely affect the economy of MCGM and finally the projects / works which are undertaken or would be undertaken in future. It was also anticipated that the collection of Octroi, which is a main source of income of MCGM, may also get reduced during this recession period. It was also categorically mentioned that at one hand there would be reduction in estimated income and at the other hand there would be increase in expenditure. It was also stated that the establishment cost has gone up due to implementation of revised payscales and it was envisaged that this cost would further increase in the next year due to payment of arrears on account of revision of payscales. Hence, it was also specifically pointed out that if we resort to provide more funds to the project works within the limited resources, it would have adverse effect on municipal finance. Before elaborating the Revised Estimates for the year 2009-10 and Budget Estimates for the year 2010-11, I feel it necessary to comment on the present and future financial position of the MCGM once again. The predictions made in respect of the financial position of the MCGM last year seem to have come true to some extent. On the background of the noticeable downfall in collection of Octroi, which is the main source of municipal income, during first six months of this financial year in the wake of worldwide recession, inability to give contribution for meeting capital expenditure from revenue accounts while preparing the Budget Estimates for the year 2009-10, the raising of loans out of internal funds to meet the capital expenditure of Rs.5975.18 crores for the year 2009-10 and the withdrawal of almost all amount to the tune of Rs.2470.50 crores from the special funds created as a part of our long term fiscal policy on the one hand, while on the other hand the abnormal rise in establishment MUNICIPAL CORPORATION OF GREATER MUMBAI 3 B U D G E T E S T I M A T E S A , B & G 2010-11 cost every month due to revision of payscales of municipal employees on the lines of the 6th Pay Commission retrospectively from 1.4.2005, the huge financial liability due to the large scale variations in the ongoing contracts for the project works of some of the departments due to certain reasons and especially as it was not possible to invite tenders for new project works during the period of model code of conduct for Parliamentary and Assembly elections held during the year 2009-10, it has become imperative to review the present financial position and future financial position of the MCGM as well. In this context, a circular for adopting economy measures has been issued. Accordingly, in order to apprise the Standing Committee of the present and future financial positions, a detailed report on the financial position of the MCGM has been placed before the Standing Committee and this report is still under consideration of the Standing Committee. In this circular regarding the economy measures, a 25% saving was suggested in the works carried out by the Civil Works Contractors and a 10% saving was suggested in other revenue expenditure. Saving to the extent of approximately Rs. 400 to 450 crores in the expenditure was expected thereby. There was a detailed deliberation on this report about MCGM’s financial position in the Standing Committee. During this meeting, the Hon’ble Standing Committee members strongly objected to the proposed 25% saving and insisted on withdrawal of the proposed reduction. After a comprehensive discussion, I honoured the sentiments of the Hon’ble Councillors and declared a decision that this 25% reduction would not be made applicable to “Ward Development Fund” and “Councillor’s Fund”. This decision was communicated to all the concerned. MUNICIPAL CORPORATION OF GREATER MUMBAI 4 B U D G E T E S T I M A T E S A , B & G 2010-11 2. Budgetary Reforms 2.1 Significant Progress on Outcome Based Budget In continuation of my announcement in the 2009-10 Budget about the roadmap of the outcome-based budget of the M.C.G.M. I am happy to inform that we have succeeded in developing a model for outcome-based budget during the year. A package of output-based performance indicators and outcome-based performance indicators to measure the progress and performance of activities in all 19 departments of the M.C.G.M has been prepared by the consultants ‘Society for Development Studies (SDS)’ on the basis of research work done by them. The complete report in this regard prepared by the consultant is being studied and discussed in detail. On final acceptance of this report by the Municipal Administration, further action will be taken accordingly. While we recognize that considerable improvement remains to be done with respect to the coverage and to an extent, the quality of the data base, it is nevertheless, a credible achievement in a government system where data generation and recording of operations, roadblocks and performance is not yet given the due attention. I may assure all of you that this major roadblock in developing a comprehensive and credible database on the operations in the M.C.G.M. will be effectively resolved during 2010-11. 2.2 Outcome Roadmap made Operational In situations where the level of attainment was not satisfactory, we have assessed the key roadblocks and their causative factors in the case of MUNICIPAL CORPORATION OF GREATER MUMBAI 5 B U D G E T E S T I M A T E S A , B & G 2010-11 the four pilot department programmes undertaken during the year for the outcome budget.
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