Thursday, April 8, 2010

Commonwealth Games 2010: The Ballooning Budget

When work on the Commonwealth Games began in 2006 the mega budget was Rs 22,000 crore. Four years later the budget is Rs 30,000 crore. It has swollen by nearly 40 per cent forcing the Delhi government to increase taxes and roll back crucial subsidies.
Naturally, everyone wants to know what went wrong.
Sources tell NDTV that some of it is a result of steep inflation that nobody has escaped and a lot of it can be attributed to mismanagement.
All projects have been delayed, primarily the Commonwealth Village, which had a budget of Rs 465 crore in 2004 and now Rs 1400 crore, losses have occurred also because many apartments remained unsold. The government was forced to buy them off contractors.
Traffic and communication infrastructure budget also saw a grand leap. Its budget for 2004 was Rs 40 crore and in 2010, it has risen to Rs 80 crore.
The budget for 11 stadia was Rs 1200 crore in 2004, it has risen to Rs 5000 crore and construction is way behind deadline.
Work on flyovers was altered mid-way several times and now, new unplanned additions have been made. The budget: Rs 1,650 crore.


With tanks : source : NDTV

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