KMC has stated that it has been passing through the acute financial problems since very long. According to the request made to the chief minister, funds/grants, amounting to over Rs 6 billion have been demanded by KMC under the following heads:
Grant-in-Aid: The Chief Minister Sindh had enhanced the share of KMC to Rs 525.600 million per month since year-2012 which continued only up to six-month (January 2012 to December 2012) in addition to Rs 326.000 million per month already being released. Unfortunately, the grant-in-aid of Rs 525.600 million has been stopped by the Finance Department without assigning any reason. The release on this account for the month of November 2012 amounting to Rs 500.00 million has not been released as yet.
Grant-in-Aid after increasing 20 percent in salaries: As the financial position of KMC is quite pathetic and fragile it is requested that the amount of grant-in-aid may be continued to be released to KMC during the current financial year (2012-2013) with an addition of 20 percent enhancing it to Rs 630.720 million per month to meet the expenditure on account of increase in the salary, pension to employees announced by the government.
2. Salaries/pension to the employees of KDA: With the merger of KDA in KMC the entire expenditure on account of salaries and pension of KDA employees is to be borne by KMC from its own funds as no additional funds for it has been provided by the government. The monthly expenditure on this account is estimated to be Rs 225,00 million. In this regard through a letter No ADM H/KMC/27/2011 dated 2-12-2011 the government was requested to arrange an amount through special grant for the payment of salary to the KDA employees.
3. Property tax: The Property Tax collected by the Excise and Taxation Department GoS is released to KMC for onwards transfer to the respective TMAs, On verification/reconciliation with the State Bank of Pakistan the following amounts on this account are yet to be released by the Government: In financial year 2011-2012: Rs 138,369 million for the period from April 2012 to June 2012.
In financial year 2012-2013: At least Rs 611.00 million for the period from July to September 2012 and Rs 173.00 million for the period from October 2012 to November 2012. Total outstanding amount comes to Rs 922.369 million.
4. Block allocation on account of district ADP 2012-2013: For the execution and completion of new priority schemes funds amounting to Rs 187.500 million out of Rs 375,000 million being the allocation under District ADP 2012-2013 (Block Allocation for New Schemes) are yet to be released by the Government as requested vide letter No PS/ADMTR/KMC/65/2012 12 and No PS/ADMTR/KMC/262/2012 dated 6-9-2012 and 6-10-2012 respectively.
5. Additional funds on account of district ADP 201 2-2013: Attention is invited to the very important schemes of various sectors under District ADP 2012-2013 of KMC, which have been linger on due to allocation of meager amounts under normal budgetary procedure. For timely availing of these schemes on their completion Government requested amounting to Rs 550.000 million vide letter No PS/ADMTR/KMC/655/2012 dated 04-12-2012.
6. Karachi package provincial ADP 2012-2013: An amount of Rs 1, 500.000 million has been kept in Provincial ADP 2012-2013 for schemes at Sr.No 2323 to 2331 under Karachi Package, out of that only an amount of Rs 334.498 million has so far been released. Remaining balance to be released by the government as requested vide letter No PS/ADMTR/KMC/291/2012 dated 22-12-2012.
7. Additional funds on account of provincial ADP 201 2-2013: Nominal allocation under Provincial ADP 2012-2013 not only result in unnecessary escalation in the cost of these schemes but also deprive the public for timely availing of these schemes on their completion. An amount of Rs 2,087.973 million is required.
8. Additional funds for pension/provident fund etc of employees of TMAs: For the last about 15 years the KMC has been bearing the expenditure for payment of pension, provident fund and group insurance of employees of TMAs. The amount is deducted from the share of their property tax. There are 5 towns where no property tax is recovered and the burden of expenditure on account of pension, provident fund and group insurance of the employees of these TMAs has been borne by KMC from its own funds which now have accumulated to more than Rs 1 billion. KMC is not in a position to bear this expenditure any more.