Pune: PCMC’s Expenditure Exceeds Income by Rs 15 Crores

Pimpri Chinchwad, 11th February 2025: The Pimpri Chinchwad Municipal Corporation (PCMC) is facing financial strain as its expenditure has surpassed its income for the current fiscal year, according to the latest financial report ending January. PCMC has spent Rs 3,424 crores, exceeding its earnings of Rs 3,409 crores by Rs 15 crores.

This financial imbalance has raised concerns about the PCMC’s fiscal health, with many voicing fears that the corporation may struggle financially if expenses are not controlled. The primary sources of income for the PCMC are property tax and building permissions, managed by the Taxation and Tax Collection Department and the Building Permission Department, respectively.

The income from these sources has been lower than expected this year. As of January end, the PCMC has only recovered Rs 511 crores in property tax. The Building Permission Department has contributed Rs 451 crores to the PCMC’s coffers. Other significant income sources include stamp duty at Rs 89 crores, water tax at Rs 59 crores, and Rs 152 crores from skysign and licenses, fire licenses and other licenses and duties.

Despite these earnings, the total expenditure of Rs 3,426 crores, which includes employee salaries and other expenses, has resulted in a deficit of Rs 15.55 crores. Various projects and policies have contributed to this increased spending.

Praveen Jain, Chief Accounts and Finance Officer cum Director (Finance, commented on the situation, stating, “The next year’s budget work is in the final stage. It will be presented to the PCMC Commissioner by 20th February. Preparations are underway, and all department’s necessary work will be included in the budget, along with everything required for the city.”

As the PCMC grapples with this financial challenge, the upcoming budget presentation is expected to address these concerns and outline strategies to balance the corporation’s income and expenditure in the coming fiscal year.