DNCC approves Tk4,500 crore budget for FY21

The Dhaka North City Corporation (DNCC) has approved a budget of Tk4,506.75 crore for the fiscal year 2020-21 with an increase in the expenditure on mosquito eradication programmes.

The budget was approved at the second corporation meeting of the DNCC on Monday, with Mayor Atiqul Islam in the chair, reads a press release.

The DNCC has set the total revenue expenditure at Tk619.85 crore for the new fiscal year. Of this, Tk70 crore has been set aside for "mosquito control activities" and Tk100 crore for "waste management".

The DNCC had allocated Tk49.3 crore for mosquito eradication in the previous fiscal year.

Mayor Atiqul Islam said development expenditure has been given priority by limiting revenue expenditure in this budget.

Mosquito eradication, waste management and development of the newly included wards of the city corporation have been given priority, he added.

The revenue collection target for the new fiscal year has been set at Tk961.65 crore. Apart from "revenue income", "other income" collection target has been set at Tk12 crore, "government grant" at Tk150 crore. On the other hand, expenditure on "government and foreign-aided projects" has been set at Tk3,010.85 crore.

When compared to the last financial year, revenue collection target has decreased by about Tk150 crore in the new fiscal.

In the fiscal year 2019-20, the revenue target was set at Tk1,106.40 crore. However, it was fixed at Tk642.40 crore in the revised budget.

A revised budget of Tk2,608.60 crore for the fiscal year 2019-20 was also approved on Monday.

Commenting on the revenue shortfall in the last fiscal year, the mayor said, "The target for total revenue collection has not been achieved as holding tax, market salami, trade licence fee and property transfer fee have not been collected as per the target."

In the current financial year, it has been proposed to spend Tk13 crore on "other expenditure" and Tk3,660 crore on "total development budget". Of this, Tk599.15 crore has been fixed to be borne from "own sources and government grants", Tk50 crore from "government special grants", and Tk3,010.85 crore from "government and foreign-aided projects".

"We have a plan to collect holding tax from commercial and industrial establishments in the 18 new wards," the mayor said.