Pune Municipal Corporation Seeks State Aid for Stamp Duty and GST From Newly Included Villages
Pune, 17th November 2023: The Pune Municipal Corporation (PMC) has decided to forward a proposal to the Department of Urban Development and Municipal Affairs of the Maharashtra State Government, urging for the inclusion of stamp duty and Goods and Services Tax (GST) amounts from the villages recently incorporated into the municipal limits. This move is anticipated to inject a substantial fund infusion of at least 500 crores into the municipal coffers.
A total of 34 villages, including 11 in October 2017 and 23 in June 2021, have been brought within the PMC limits, expanding the city’s boundaries and placing the responsibility for the development of these villages squarely on the Pune Municipal Corporation. Despite considerable land transactions and revenue generation from toll collection booths and businesses in these areas, the PMC has yet to receive income from stamp duty and GST. To address this, the PMC has laid out plans for sewage channels, rain drains, sewage treatment plants, and water supply schemes, requiring an estimated 1,500 crores. In the initial phase, the municipality plans to secure a loan of 530 crores.
While extensive constructions are underway in the incorporated villages, the stamp duty income and GST revenue share currently accumulate in the state government’s treasury. The total projected expenditure for infrastructure development in these villages is estimated to reach 9,000 crores. Despite the increased responsibilities, the PMC has not received financial assistance from the Maharashtra government, placing a significant burden on its resources.
PMC Commissioner and Administrator Vikram Kumar announced that a proposal seeking financial support will be sent to the Department of Urban Development and Municipal Affairs. If approved, this move is expected to provide the PMC with a much-needed fund injection of 500 crores. Currently, the Pune Municipal Corporation receives a monthly sum of at least 193 crores from GST, contributing substantially to its overall income. However, Commissioner Kumar highlighted that the one per cent share of stamp duty and GST revenue share is presently limited to transactions within the old limits of Pune.
