₹183 Crore Education Tax Collected in Bhopal, Only ₹16.63 Crore Spent on Schools

The news

The Bhopal Municipal Corporation collected more than ₹183 crore as education cess from city residents over the past four and a half years, but completed only ₹16.63 crore worth of school improvement works, according to the corporation's own documents. The revelation came after Ward-46 councillor Yogendra Singh Guddu Chauhan asked in the municipal council how much money had been received as education tax, how much was spent on schools, and where the remaining amount was. More than ₹166 crore of the collected amount remains unaccounted for, with officials unable to provide a clear explanation of its use.

The revenue branch, where the education cess amount is deposited, refused to provide details of expenditure and balance, saying it was not related to its department. The mechanical department, which executes school works, also denied having information about the remaining amount. The corporation had booked a budget of ₹10.32 crore for four school projects, including ₹4.89 crore for a new school in Daulatpur and ₹4.98 crore in Kankheda, but engineers later noted on files that construction was not possible due to lack of land. A ₹18 lakh work at Primary School Raslakheri was cancelled, and the tender for a ₹27 lakh work in Bagsewania is in the process of being cancelled.

Several other projects remain stalled. A ₹3.95 crore higher secondary and middle school in Bairagarh is awaiting land, a ₹1.28 crore work at Bhouri school awaits the mayor's approval, and works at Kushipura, Dwarka Nagar and Pratap school are also stuck. The mechanical department booked a budget of ₹36.46 crore for school works, but most works were not found on site during verification. Only ₹16.63 crore of works were completed, and ₹2.28 crore of works are ongoing. Municipal Commissioner Ram Prakash Ahirwar said a financial audit of the education cess accounts is being conducted and that the entire amount will be used only for schools and academic improvements.

What is education cess and how is it meant to be used?

Education cess is an earmarked tax or surcharge levied by a government body specifically to fund education-related expenses. In this case, the Bhopal Municipal Corporation collects it from city residents, and the funds are meant to be used for improving government schools and academic infrastructure. As an earmarked tax, the principle of accountability in public finance requires that the money be used efficiently, transparently, and strictly for the purpose it was collected for, with proper audit and reporting.

What the stalled projects reveal about planning failures

The stalled projects point to poor planning and coordination within the corporation. For instance, budgets were booked for new schools in Daulatpur and Kankheda even though land was not available, and engineers later declared construction impossible. Similarly, several works are stuck at the stage of land allocation, technical approval, or the mayor's approval. The cancellation of a ₹18 lakh work at Raslakheri and the ongoing tender cancellation for a ₹27 lakh work in Bagsewania further indicate that funds were allocated without proper groundwork, leaving the earmarked money idle while schools continue to lack basic facilities.

What happens next?

Municipal Commissioner Ram Prakash Ahirwar has said that a financial audit of the entire education cess account and expenditure is being conducted. He has assured that the full amount will be used only for schools and academic improvements, and further construction and development works will be carried out based on need. The audit is expected to determine the actual expenditure and the balance remaining in the revenue branch's accounts.