Know Your City's Budget

Where will AMC spend its

annual budget of

Rs. 6990Crore
in 2018-19 ?
A hmedabad Municipal
Corpora on's (AMC) General
Body (Municipal Board) passed
the AMC's Annual Budget es mates
of Rs.6990 crore for 2018-19. AMC's
revenue expenditure for next financial year is Rs. 3500 crore and development budget (Capital budget) is Rs.
3490 crore. The Revised es mates of AMC's revenue expenditure budget for 2017-18 is Rs.2900 crore against
the budget es mates of Rs.3241 crore, and the revised es mates for Development expenditure is Rs. 2450 crore
against the BE of Rs. 3310 crore. Thus AMC's budget expenditure registered under spending of Rs 1201 crore
(18.33%) in 2017-18, as AMC could not mobilize the financial resources as per planned es mates.

. Capital Budget Revised Account % of

expenditure Es mates Es mates /Actual Actual
(BE) (RE) Expendi expend
ture against BE
Figures in crore
2012-13 2607 1816 1574 60%
2013-14 2659 2075 1829 69%
2014-15 2828 2101 2081 74%
2015-16 2968 2460 2274 77%
2016-17 3212 2424 2073 65%
2017-18 3310 2450 74%
2018-19 3490

Revenue Account/ % of AMC's Revenue Expenditure: The revenue

expenditure Actual actual expenditure (is to pay salaries to employees,
Budget Revised Expendit expend maintenance and repairs, grants etc) has
Es mate Es mate ure against BE remained around 85% against the budget
Figures in crore es mates in last six years. The less expenditure
2012-13 1904 1827 1760 92% on revenue side, impacts the quality of services
2013-14 2292.12 2292 1924 84% to the ci zens. The revenue expenditure is
2014-15 2473 2161 2103 85% around 90% due to salary, pension and social
2015-16 2697 2375 2316 88% security of its employees.
206-17 2868 2620 2499 87%
2017-18 3241 2900 89%
2018-19 3500 Pathey Budget Center, patheya.budget@gmail.com
 The ci zens must know the budget outlay of Amdavad Municipal Corpora on), as they pay the various
taxes levied by the AMC for provisioning for delivery of various services to the ci zens and also develop
infrastructure for making life livable in the city with social inclusion.

The AMC has budgetary provisions to address the needs of all ci zens like children, women and men, senior
ci zens, slum dwellers, vendors and others. The AMC's governance provides various services and ameni es
to ci zens, but the efficiency and quality of delivery depends on various factors like resource mobiliza on
and expenditure. The compliance eco-system, where ci zens pay their due taxes regularly, besides,
financial resources devolved to AMC in due me, decision making process, social inclusion, transparency
and accountability of the system to ci zens. Above all, it's also about the Priority of development work.

When the AMC fails short of mobilizing the financial resources as es mated, the basic services delivery gets
affected and infrastructure development process gets decelerated due to shortage of finances.

AMC has never achieved /collected the Revenue % of Diff of

tax/ revenue from various sources as Receipt Budget Revised Actual Actual
planned/Es mated. The actual revenue Es mate Es mate Actual Receipt Receipt
collec on has been 75% to 85% in last five BE RE Receipt against BE against BE
years. Achieving less revenue collec ons Year Figures in crore
indicates the poor tax administra on and 2013-14 3366 2748 2538 75.41% -827.64
resource mobiliza on. AMC missed the 2014-15 3738 3118 2891 77.33% -847.51
achieving the target of revenue 2015-16 4015 3370 3432 85.48% -582.99
mobiliza on due to shor all of Rs. 827 206-17 4465 3700 3406 76.28% -1058.97
crore in 2013-14, Rs. 847 crore in 2014-15. 2017-18 4934 3951 80.08% -983
In 2016-17, AMC registered shor all of 2018-19 5240
revenue receipt over Rs. 1000 crore and
likely to collect Rs.983 crore less in 2017-
18 as well.

% of Diff of
Capital Receipt Actual
d Actual
Receipt Budget Revise against Receipt
e Capital
Es mate Es mat BE against BE
Receipt
Figures in crore
Year 4
1841 69.25% -817.6
2659 2075
2013-14 82.65% -490.8
0
2101 2337
2014-15 2828
86.83% -390.8
8
2350 2577
2015-16 2967
53.99% -1459.
55
2424 1712
206-17 3172
74.02% -860
3310 2450
2017-18
2018-19 3490

AMC's expenditure budget is spread in 1800 lines items (Revenue+ Capital), has been distributed in 25
func ons/categories, as shown in the “Know your City Budget: Where will Amdavad Municipal Corpora on spend
its annual budget of Rs. 6990 crore in 2018-19 ?

Pathey Budget Center's previous year's budget analysis of AMC suggests that the budget expenditure is short of as
es mated due to shor all in financial resources mobiliza on and it has been quite well set trends, therefore, it is
be er; AMC's budget planners present more realis c budget with a ainable resource mobiliza on, instead of
inflated figures to disappoint the ci zens at the year-end by repor ng under spending of budget es mates. AMC's
Development expenditure budget is distributed through AMC's Finance department's budget for administra on

Pathey Budget Center, patheya.budget@gmail.com

and establishment, Zonal Development works Budget, Engineering Department's budget, and large chunk of
development budget expenditure is under state government sponsored Swarnim Jayan Mukhiya Mantri Sheri
Vikas Yojna(Golden Jubilee Chief Minister's Urban Development Scheme), besides, there are many others
development works like MP/MLA local area development works, AMRUT, JNNURM, Metro train and others.

The present budget analysis exercise is Pathey Budget center's a empt to know the sector wise budget outlay so
that ci zens have fair idea of their city budget and policy makers' priority in the present financial year, of course
ci zens can make a empt to influence the budget making process through their elected representa ves,
submission of their (ci zens') priori es, provided there is scope for par cipatory budge ng (P-Budget) process,
where ci zens' concerns and aspira on are sought in the budget formula ng process. The elected wing of AMC
needs to ponder over the P budget ini a ve for all wards to partner with ci zenship for seeking ci zens' needs
and thoughts in planning and budge ng process.

The AMC's budget is presented under Ar cle 95- BPMC Act 1949 (Bombay Provincial Municipal Corpora on),
now amended to GPMC Act (Gujarat Provincial Municipal Corpora on).

The good budget practices,

AMC should adopt

Pathey Budget Center, patheya.budget@gmail.com

Know your City's Budget
Sectoral Distribution of
AMC's
Budget 2018-19 BE

- Mahender Jethmalani
Pathey Budget Center,

Pathey

Pathey Budget Center (Pathey Trust)

Email: patheya.budget@hotmail.com/
patheya.budget@gmail.com
Website: www.pathey.in

By
Mahender Jethmalani
Assisted by
Ramanlal Panchal &
Chintan Patel