Hyderabad: The mounting debts of the Greater Hyderabad Municipal Corporation (GHMC) have put brakes on infrastructure projects in the city. According to sources, work on foot overbridges, flyovers, road widening, and street lighting installations, have all slowed down because of the civic body’s empty coffers.
As on Dec 1, GHMC’s outstanding debt stood at 5,800 crore — more than 75% of its approved annual budget of 8,400 crore. Of this, the corporation has managed to repay only 1,139 crore so far. If that’s not all, it also has additional pending bills worth 800 crore with a monthly commitment of 180 crore to be paid towards the principal amount and compound interest to various financial institutions.
“The GHMC has accumulated these liabilities through municipal bonds, rupee term loans, and borrowings from financial institutions. A significant portion of these funds was allocated towards construction of flyovers and underpasses, while the remaining was utilised for comprehensive road maintenance programmes (CRMP) and nala development projects,” said an official.
Overspending
He attributed the financial crisis to multiple factors: excessive spending of over 5,000 crore on flyovers, underpasses under the Strategic Road Development Program (SRDP) and CRMP works between 2019 and 2023 coupled with limited revenue generation.
Till Dec 24, 2024, GHMC earned just about 2,000 crore through property taxes, town planning fees, revenue receipts, trade licence fees, advertisement fees, estates, and mutation fees against the projected 3,000 crore. Of this, it paid 1,500 crore (approx.) towards salaries of employees, pensions, wages, and establishment expenses and spent about 680 crore on repayment of borrowings.
The piling debts has not just adversely impacted ongoing works but also put a stop on approvals for new roads, establishment of recreational spaces like parks and playgrounds, and the enhancement of drainage systems, and junction improvements.
Despite the fund crunch, GHMC commissioner K Ilambarithi said that the civic body is working out a plan to put works back on track soon.
Former mayor and ex-officio member of GHMC, Mohammed Majid Hussain, meanwhile, raised concern with the civic body’s “increasing reliance on loans”. “During 2012-13, when I was the mayor we did not have any debts and that financial year concluded with a surplus revenue of 500 crore. Over time, GHMC has started enhancing its loan amounts that’s led to a severe financial strain,” he said.
