Bombay Municipal Corporation faces debt trap

The Bombay Municipal Corporation may become a victim of its lavish ways.

The BMC, which pays its workers double, even triple the salaries drawn by workers in other major civic corporations, spends 75 per cent of the revenue it generates paying monthly salaries. The rest is spent on the corporation itself and development schemes.

Additional Municipal Commissioner Shridhar Joshi said, "The present financial situation is very serious and the corporation might have to part with its autonomy if the state government insists on (seeking) financial help."

The BMC finds itself in these dire straits because it has had to repeatedly capitulate to demands put forward by workers unions. If their demand for more wage hikes continues, the corporation will have to borrow money from the market, civic sources said.

The BMC is expected to earn a revenue of Rs 15.28 billion during 1997-98, out of which Rs 10.95 billion will be spent on salaries.

Thanks to the BMC union, along with overtime the workers earn more than the municipal commissioner himself. But the fine imposed on workers coming late is a mere 50 paise.

In addition, senior peons or clerks allegedly earn between Rs 12,000 and Rs 17,000 as bribes, one senior BMC officer said. Due to these factors every year 3,500 applicants try to secure a job in the corporation. Asked why he wished to join the BMC, one candid candidate admitted, "The BMC job is far more comfortable and profitable" than working in a private company.

Compiled by Prasanna D Zore from the Marathi media

   A comparative data of the revenue receipts
   and the monthly salary outgo (%)

  Year                  Total revenue         Monthly salary out go           

                        receipts               (Rs in billions)                 

                        (Rs. in billions)                                       

  1992-93                8.03                5.51 (68%)                    

  1993-94               10.24                6.48 (63%)                    

  1994-95               11.89                 8.1  (68%)                    

  1995-96               13.5                 8.95 (66%)                    

  1996-97 (Estimated)   17.32               13.02 (75%)                   

   Bonus

  Year         (Rs in million)                                                

  1992-93      473.8                                                         

  1993-94      650.9                                                         

  1994-95      727.7                                                         

  1995-96      769.6                                                         

   A comparison of the salaries drawn by five major
   municipal corporations in India (Figures in Rs)

                 Conservancy   Clerks     Primary teachers  Nurses              

                 Staff                                                          

  Bombay         4,107          4,707       4,741              4,819                

  Bangalore      2,087          2,661       2,865              2,820                

  Madras        2,117          2,689       3,299              3,574                

  Calcutta       2,038          2,640       3,042              3,042                

  Delhi          1,965          2,552       3,142              3,569