MARGAO: The Margao Municipal Council has found itself in a major financial crisis, with the coffers almost running empty, with the funds available in the treasury not sufficient enough to meet the salaries and wages for the month of September.
With the outstanding tax arrears hovering around Rs 18 crore mark and revenue dropping to an all time low, the Margao Municipal Council is a facing a million dollar question “ how to arrange Rs 1.5 crore within a day’s time to pay the salary bill.
The Margao municipality cannot go for premature withdrawal of fixed deposit to foot the salary bill. For, the civic body had only recently closed a fixed deposit, which was part of the salary reserve fund. As per the rules, the civic body was required to recoup the funds, but has failed to do so and hence is not entitled to go for premature withdrawal of another fixed deposit.
Margao Municipal employees normally receive their salary on the last day of the month. The employees, however, are keeping their fingers crossed over salaries on Thursday, but for a different reason.
The MMC requires funds to the tune of around Rs two crore, to meet the salary and wage bill of the workforce -- Rs 1.5 crore for salaries and around Rs 30-50 lakh to foot the wage bill of daily wage and contract workers.
The civic coffers, however, does not inspire confidence amongst the employees and workers. Till Wednesday evening, the MMC had a cash balance of less than Rs 50 lakh.
The account section is believed to have put up a note, stating that the civic body should intensify the revenue recoveries to foot the salary bill rather than making an attempt to withdraw fixed deposits.
The ground reality, however, is different. After Chief Officer Agnelo Fernandes constituted two teams for tax recoveries, no good news is coming from the taxation section. The two recovery teams have fanned out to various establishments, including banks with a plea to clear the trade license fees along with the one month rent at the earliest.
‘The Goan’ understands that revenue to the tune of Rs six lakh have come into the treasury on Tuesday. The revenue is believed to have dipped down to Rs three lakh on Wednesday.
The Chief Officer, when contacted, confirmed there may be delay in payment of salaries and wages to the employees and workers for the month of September. “We expect the staff to recover the tax arrears so that the revenue can be spent on payment of salaries and wages. We cannot go for premature withdrawal of fixed deposits”, he said
The Chief Officer said he would take stock of the revenue position on Thursday, the last day of the month.
The Chief Officer is facing an unusual situation to arrange Rs 1.5 crore to foot the salary bill on Thursday and to make arrangement for another Rs 30-40 lakh for payment of wages. “Let us wait and see whether the recovery teams can get the much needed revenue. If not, I do not think there will be funds to pay the salaries tomorrow”, adding the employees will to wait for a couple of days to get their salary.
