FDs are for development, using them won’t harm BMC’s finances: Bhushan Gagrani

If property tax is imposed on slums, will it lead to the legalisation of slum pockets?
No, even if we collect property tax from slums, it will not legalise them. We will recover property tax from commercial slum properties, and the revenue will be used for the city’s development. Other commercial establishments outside slums also pay property tax, and the same principle applies here.

You’re planning to use fixed deposits (FDs) for the city’s development. Will this impact the financial health of the BMC?
As of the end of January, we have Rs 82,854 crore in fixed deposits. A marginal reduction or increase in these deposits is a routine financial adjustment. As of March 31 last year, the amount stood at Rs 82,737 crore. These are just numerical figures, but our submission is that while fixed deposits (FDs) are important, they are not the sole indicators of our total budget or financial health. The net earnings from FDs are just 2 per cent, whereas we need to invest in development projects. Using FDs for development is a necessary step and does not put the BMC in financial trouble. Moreover, we are not in a situation where we cannot pay salaries to employees or make payments to contractors. The FDs are specifically meant for development, and we receive only 2.5 per cent interest on them, which is lower than the inflation rate. Therefore, using these funds for essential projects is a prudent financial decision.

What is the benefit of announcing ambitious projects?
We have proposed that the Mumbai Coastal Road (South) from Marine Drive to the Bandra-Worli Sea Link, the Goregaon-Mulund Link Road (GMLR), the Mumbai Coastal Road (North) from Versova to Dahisar, and the Elevated Road from Link Road to Dahisar (West) be recognised as vital urban transport projects under the Maharashtra Regional and Town Planning Act, 1986. This designation would allow the Brihanmumbai Municipal Corporation (BMC) to receive a share of the stamp duty collected from these projects, providing essential financial support for their development.