Editorial

DCC's shoe-string budget

Better arrangement warranted
Mayor Sadeque Hossain Khoka has announced a budget for the Dhaka City Corporation (DCC) that is as cash-strapped as the pervious editions have been in recent years. The development outlay is 73 per cent of the total budgetary allocation of Tk 922.01 crore. The remainder 27 per cent will be spent to cover recurrent costs reflecting a rather minimalist concern for maintenance.

The reliance on government funds and foreign aid remains a critical element to the budgetary exercise: Tk 522.25 crore coming from those two sources. The revenue collection target is set at Tk 391.01 crore, which sounds rather ambitions given that only Tk 238.21 crore could be garnered internally in the foregoing year.

But there is an obvious scope to improve upon the collection figures. Holding tax, for one thing, remains a problem area. One wonders why? There is potential for a turn-around in the situation: Tk 85.76 crore worth of holding tax is in arrears. Why must the government, semi-government and autonomous organisations default on payment of the tax? Yes, the general taxpayers owe Tk 71 crore in outstanding payment. There are complaints from the denizens that the DCC assessors have been arbitrary in fixing a levy in the first instance which leads to hearing of appeals to reduce it. The cases are not disposed of quickly enough, so that the payment schedule hits a snag.

In this context, we should welcome mayor Khoka's decision to introduce self-assessment system to collect holding tax at the ward-level. That he has settled for this instead of increasing the levy is a good move. Leaving it to the holding owners should be deemed to be a progressive step.

That said, we turn to mosquito control and waste management which are intertwined issues. Tk 17.50 crore is earmarked for containing the mosquito menace, and Tk 60 crore for waste management making for a total of Tk 77.50 crore which is perhaps a little more than half the required amount. But can the mayor ensure we will get even that money's worth? There is ample scope for better management of city affairs topped off by a brake applied on corruption and malpractices. We believe mayor Khoka can vastly improve the service delivery system with some private sector participation.