Development works in the Hubballi-Dharwad Municipal Corporation have been affected as the State government is not providing funds to release pension for the retired staff, Sudhir Saraf, chairman, Standing Committee on Finance, has alleged.
Addressing a press conference here on Friday, he said that the HDMC was compelled to pay pension to the retired staff from general funds meant for development works.
The government had not released Rs. 28 crore for 2014-15 and Rs. 30 crore for 2015-16. “The HDMC needs to arrange Rs. 32 crore for paying pension in the next fiscal. So far, we have diverted money from general funds to pension funds.
“The retired staff are being paid only pension since October 2014 and other benefits have not been paid due to paucity of funds. Even the pension for March 2015 is pending. The government is providing pension funds to all the municipalities except Hubballi-Dharwad and Belagavi for strange reasons,” he alleged. Similarly, the government was not allowing the HDMC to renew the lease of the municipal properties. It was resulting in loss of revenue to the tune of Rs. 3.68 crore. Of the 2,710 properties, the lease period of 1,313 had expired and they had not been renewed.
“The HDMC had proposed to the government to sell such properties to those who possess them or auction them. At the same time, it was decided that the municipal officials will identify the properties which could be used for public purpose and acquire them. However, the government had not yet taken any decision on the matter,” Mr. Saraf added.
Corporation paying pension from general funds and works are affected: standing committee chairman
