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CAG reports several flaws in BBMP management

The Comptroller and Auditor General (CAG) on Thursday highlighted several discrepancies in the management of the BBMP in its report submitted to the state legislature.

Published: 23rd February 2018 04:40 AM  |   Last Updated: 23rd February 2018 05:21 AM   |  A+A-

By Express News Service

BENGALURU: The Comptroller and Auditor General (CAG) on Thursday highlighted several discrepancies in the management of the BBMP in its report submitted to the state legislature. These include payment of interest of Rs 12.26 crore which could have been avoided, loss of revenue to the tune of Rs 95.63 crore due to non-collection of cess and further loss of revenue by non-collection of enrolment fee.

As part of its report on urban local bodies, the CAG highlighted that the BBMP, between 2012-13 and 2016-17, had failed to remit collected health cess to the tune of Rs 857 crore collected by it to the state government and had also held back library cess (Rs 183 crore) and beggary cess (Rs 109 crore) which were supposed to be submitted to the departments concerned. The Karnataka Municipal Corporations Act and other acts empower BBMP to collect property tax with cess. Local bodies are entitled to deduct 10% of the cess collected as charges and are supposed to remit the rest of the money.

A statement by the Accountant General (General and Social Sector Audit), said, “The percentage of remittance to departments with a monitoring mechanism was significantly higher than those without a monitoring mechanism. Library cess, beggary cess, urban transport cess and slum development cess has been utilised for intended purposes. The utilisation of labour cess was poor and needs examination by the Government. There was no evidence of utilisation of health cess by the department concerned.”



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