The Pune Municipal Corporation (PMC) is gearing up to submit a proposal to the Maharashtra State Government, specifically the Department of Urban Development and Municipal Affairs, requesting financial aid in the form of stamp duty and Goods and Services Tax (GST) revenue from recently incorporated villages. This strategic move aims to inject a significant financial boost, estimated at 500 crores, into the PMC coffers.
The PMC’s expansion incorporated a total of 34 villages, with 11 joining in October 2017 and an additional 23 in June 2021. Despite robust land transactions and revenue streams from toll collection booths and local businesses, the PMC has yet to receive its due share of stamp duty and GST. The municipality is actively engaged in development plans for these areas, including sewage channels, rain drains, sewage treatment plants, and water supply schemes, requiring an estimated 1,500 crores. To kickstart these initiatives, the PMC plans to secure a loan of 530 crores in the initial phase.
Despite ongoing construction and development efforts, the stamp duty and GST revenues continue to accumulate in the state government’s treasury. The projected expenditure for comprehensive infrastructure development in these villages is expected to reach 9,000 crores. The lack of financial assistance from the Maharashtra government has placed a substantial burden on the PMC’s resources.
PMC Commissioner and Administrator Vikram Kumar announced the impending submission of a proposal seeking financial support. If approved, this initiative is poised to infuse the PMC with a much-needed fund injection of 500 crores. Presently, the PMC receives a monthly sum of at least 193 crores from GST, significantly contributing to its overall income. However, Commissioner Kumar emphasized that the one percent share of stamp duty and GST revenue is currently confined to transactions within the old limits of Pune.
