Introduction:
Re-Naturing Mumbai - (https://www.the-urban-anecdotes.com/post/re-naturing-mumbai) was envisioned to guide the integration of the city's natural resources into the planning process. However, to execute this plan, it is necessary to address the City Government's Budget Proposal. It is important to allocate the local financial resources towards the sectors that enable this vision.
Local Government in Mumbai – MCGM / BMC:
The Local Government in Mumbai at City Level is known as the Municipal Corporation of Greater Mumbai (MCGM) or the Brinhanmumbai Municipal Corporation (BMC). The MCGM is in complete authority to guide the developments within the city boundaries.
A Broad Overview of Intergovernmental Structure in the Country and Mumbai (marked in red)
MCGM is a decentralized (Multi-Level & Multi-Dimensional) Local Government. The enabling factors for the same include:
1. Political Devolution & Subsidiarity: The decisions related to the City's development are completely under its authority.
2. Fiscal Flow (National to Local): The cost of services provided by the MCGM is set up by them itself. The Central Government in India has also set up a tax called the Goods and Services Tax (GST) which is levied all over the country as it is a mandate included in the regulatory framework. The State Govt of Maharashtra provides Grants to the City.
3. Administration (Capacity to Deliver Services at Local Level): All infrastructure projects related to the city is governed by MCGM. Other than this, the local government has also set up (Private) Para-Statal agencies such as MMRDA and MHADA that assist in land use planning and management, housing and transport requirement
Mobilizing Local Revenues
MCGMs functions in the context of this proposal note include:
1. Financial Planning towards City Development
2. Environmental Protection
3. Allocation of Funds towards the Development Sectors of top priority such as Health and Solid Waste Management for the City
The Sources of Revenue include: Property Tax, Octroi Tax, GST, Grants from State Government, Investment Income and Development Plan Department.
However, there are external factors such as most recently, the pandemic, that has affected the revenue flow. This includes the Octroi (transfer of goods to the city) and the Development Plan Department (Due to unused stock of housing in the City)
Important Infrastructure Projects that the City Needs
Considering the pandemic (an exogenous factor), the city’s vision should be redirected towards the well-being of the inhabitants. The goals would ideally now include short-term (adapting to the pandemic) as well as long term planning.
Broad Overview of MCGMs Capital Expenditure 2021-2022
The long term goal should also focus on integrating the natural resources into the city to create a natural ecosystem and enhance the resilience of the city towards yearly flooding. The Annual Financial Plan needs to specifically prioritize Nature, Health & Transport in the local budget. Reforms follow a clarified vision. Therefore, the city needs:
1. Nature Centric Approach to Planning: Including Water Management, Network of Urban Parks, Forest Management and Coastal Management (Beach, Wetland and Mangroves)
2. Strengthening Existing Transport Network & Infrastructure Systems: including Bus, Train and Metro Systems
Interconnected Urban Mobility Systems
3. Tactical Urban Plans: such as Cycle Networks, Accessible Neighbourhood Open Spaces and Health Facilities.
Community-driven, Evidence-based tactical planning
Innovative Mechanisms to Improve Financial Management Practices
1. Nature Centric Approach to Planning:
Allocating Financial Resources towards Managing Nature into Planning
Pvt Sector Involvement (PSI) as they enable technological expertise and mainstream this approach into the planning process.
Design-Build-Finance-Operate (DBFO)
2. Strengthening Existing Transport Networks:
Allocating Financial Resources towards Transport Management
ParaStatal Agencies: Planning for Sustainable Transport Networks
Build – Operate – Transfer (BOT)
3. Tactical Urban Plan:
Allocate deduced percentage of Financial Resources from Coastal Road Project towards an emergency fund during the Pandemic.
Land Value Capture Mechanism: Connecting the existing Transport Networks to increase Public Spaces. This increases the efficiency of public mobility services for the public
Risk Identification & Management
1. Project Risk: Whether the Private Agencies agree to a Timed Project
All the Mechanisms are time-constrained and work best if implemented soon. Providing a detailed financial framework and design strategies to the Private Agency beforehand so the implementation is efficient
2. Opportunity to Diversify Funding: Redirecting Financial Resources to Improve the Financial Capacities of the Local Govt.
Allocating the higher Financial Resources to sectors that integrate Nature-Based Solutions into the city: such as cleaning River systems & stormwater management, Public Health and Transport
3. Industry & Market Risks: Whether a tactical Strategic Plan is required or proves efficient
Many cities around the world have implemented tactical strategies for efficient movement and quality of life during the pandemic period. This in itself is a motivating factor to apply it for the City.
Resources:
Local City Government Portal: MCGM Budget 2021- 2022
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