Civic Centre, Delhi
– Photo: Amar Ujala
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For the Aam Aadmi Party, getting the power of the Municipal Corporation of Delhi is like a double-edged sword. The Delhi government has no other way than to implement the report of the fourth Delhi Finance Commission in the direction of rescuing the corporation trapped in economic crisis, because all the sources of income of the corporation are not immediately, but for years to bring the economic situation back on track. are not able to.
On the other hand, if the report is implemented, the financial condition of the Delhi government will worsen. In fact, according to this report, the Delhi government will have to pay thrice more annually to the corporation. Along with this, the Delhi government will also have to pay the arrears of the last 10 years. The Delhi government currently gives 4 percent of all its tax and fee income to the corporation, according to the Third Delhi Finance Commission report, while the fourth Delhi Pay Commission report gives 12 and a half percent of all tax and fee income to the MCD. Sharing is recommended.
Apart from this, provision has been made in the report to give share to the corporation from the year 2012-13 onwards as per its recommendations. The Delhi government had accepted the report of the Fourth Delhi Finance Commission in 2015, but did not implement it. During this, the Delhi government had argued that it was not getting its full share from the income of the central government. For this reason, it cannot give its share of income to MCD under this report, but now in the event of AAP forming government in MCD, it will be difficult for it to give such arguments, because during the corporation elections, along with improving the economic condition, AAP has- Along with this, he has promised to solve all the problems and provide facilities to the people.
According to the report of the third Delhi Finance Commission, the corporation currently gets about Rs 3,000 crore from the Delhi government every year, while after the implementation of the report of the fourth Delhi Finance Commission, it will get about Rs 9,000 crore every year. Not only this, the amount of MCD’s share will also increase as the income of the Delhi government increases. Apart from this, the MCD will also get about 40 thousand crore rupees from the Delhi government as arrears for the last 10 years under its annual income.
The vault will be filled when the report is invoked
MCD has a budget of Rs 15 thousand crore for the current year. It will not face any financial crisis if it starts getting about Rs 9,000 crore from the Delhi government as per the report of the Fourth Delhi Finance Commission, because it gets about Rs 1,500 crore as grant from the central government and its own resources. It is estimated that a revenue of about eight thousand crore rupees will be received this year from internal sources. As per the recommendation of the report, after getting the dues of about Rs 40,000 crore from the Delhi government, the corporation will be debt-free and will clear all the liabilities.
Sources of income did not increase despite reprimand
The Fourth Delhi Finance Commission, along with recommending an increase in the share of Delhi government’s taxes and fees to the MCD, had also reprimanded it for failing to raise revenue. It was specifically said in the report that MCD has no attention towards collecting property tax. Only 25 percent people are getting tax. People themselves come to him to pay this tax. Apart from this, the MCD was also advised to generate new sources of income, but despite seven years having passed since the report, the MCD has not taken any concrete steps towards strengthening its finances.