KARACHI: A ‘surplus’ budget was announced for district municipal corporation (DMC) of Karachi’s south district for the year 2015-16, though the income shown in an official document was more than the expenses.

DMC south administrator Farooq Lango insisted that the budget was surplus, citing that the figures did not present the complete picture.

According to a press release issued to the media three days after the start of the new financial year, the DMC south will spend over Rs2.74 billion while its income is expected to be around Rs2.68 billion. The press release says that the budget had a surplus of over Rs1.2 million, suggesting that figures did not show the actual picture. The figures given in the breakup of expenditures and income do not match the total amount of income and expenses given in the press release.

It says that DMC will spend over Rs1.52 billion on establishment; over Rs520 million for contingencies; over Rs235 million for maintenance; Rs6.5 million for environmental protection; and Rs150 million for ongoing schemes and dues etc. A simple calculation shows the total expenses will be around Rs2.76 billion unlike the figure of Rs2.74 billion mentioned in the official document.

Regarding the income, the press release says that the DMC will generate around Rs245 million from its own sources while it expects to receive around Rs2.44 billion from the Sindh government and Karachi Metropolitan Corporation.

The budget was presented by the administrator without calling in the media, as the press release was later issued.

On the occasion, Mr Lango said that last year the Sindh government had not provided the agreed amount of Octroi and Zila Tax (OZT); promised funds of property tax etc had also been slashed and electricity bills had been deducted at source owing to which the DMC had faced cash crunch and experienced difficulties in paying salaries to its staffers.

Published in Dawn, July 4th, 2015

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