Detroit is broke – Indian cities are close.

There is an article in Times of India :

Which can be seen as warning signal for India but politicians seems to be sleeping or knowingly pushing time, buying time with short term remedies so that they could steer clear from 2014 elections.

Here are some comments from the article:

“State government assistance keeps the Jaipur Municipal Corporation afloat. Most of our earnings go in paying our 8,000-strong staff,” Nita Khaitan, chairperson, JMC finance committee, says. Municipal bodies across UP are limping.

The picture is as bleak in Kochi. The civic body depends on property, advertisement, entertainment and professional taxes and grants from the central and state governments. It expects to generate Rs 877.97 crore in 2013-14 against an estimated expense of Rs 849.86 crore. “The corporation is cash-strapped and depends on the state to execute big infrastructure projects. Bulk of its income goes in paying salaries and pensions,” Mayor Tony Chammany said. Worsening matters is the civic body’s inability to collect property tax dues and user charges. Citizens stubbornly resist paying and the state’s powerlessness is inexplicable.

The Kolkata Municipal Corporation (KMC) is no better. Efforts are on to boost revenues through improved property tax collection. The KMC’s total budget is Rs 3,500 crore. Of this, Rs 1,900 crore comes from government grants. It generates Rs 1,600 crore. The total expenditure is Rs 3,400 crore. That leaves very little for development work.

In Goa, the Panaji Corporation too is passing through difficult times. It depends on the government for staff salaries and other expenses. Revenue generation is shoddy.

Where we are heading is total collapse of the system. Lets see if Govt wake up from deep sleep.

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