Lakhs of rupees in arrears from almost all revenue sources, no receipt of the salary grants for the last two years and salaries of nearly a crore rupees pending are currently plaguing the Margao Municipal Council (MMC). The Municipality has gone into a coma as the finances of the Class I Municipality of Goa have gone askew.
The MMC has 280 permanent staff and over 180 daily wage staff salaries to be paid every month, the amount of which is touching a whopping Rs 1 crore. The MMC is presently walking with callipers and will not be able to withstand the goliath force of the lopsided income and expenditure pattern of the civic body. In a desperate attempt to salvage the situation, the MMC has reportedly considered withdrawing a fixed deposit worth Rs 50 lakh as a backup for the ever leaking treasury.
The council has not received a salary grant from the government for the last two years. Hence the MMC has become helplessly reliant on taxes and revenues collected by them to pay the salaries of employees. Because the deficiency is a monthly story, sources informed that the MMC has considered withdrawing the fixed deposit. However, the MMC is in denial mode.
The MMC has been in an economic depression since the sixth pay commission was enforced in the state. Recovery processes began some years ago with the help of a team. However, following the transfer of Chief Officer Yashwant Tawde, the mission was sent packing. The MMC currently has a team for recovery, but due to their inactivity, the arrears have increased and recovery has stopped.
Tawde, in conversation with Herald said that no fixed deposit was withdrawn since he took over but admitted that he didn’t know if it was done before he took up his role. “The Municipality hasn’t received a salary grant for the last two years. We have been paying salaries from grant receipts,” he mentioned, adding, “There is a financial crunch, but we haven’t considered any withdrawals of FDs presently. It won’t be possible to spend those reserves.”
The MMC has now decided to get the illegal houses in their jurisdiction assessed so that a house tax and other tax can be applied. This move has been done to fix the leakage of revenue and also to get households to pay for services rendered by the civic body. A resolution to this effect has already taken place at the latest MMC meeting.
“There are several illegal houses enjoying our services but not paying for them. We intend to get the information of these houses and will make them pay house tax for the services provided to them,” Tawde quipped. “The imposing of the tax won’t give them legal status. This move is expected only to boost the revenue of the MMC which will in turn help the civic body,” he added.
