Twitter
Advertisement

Delhi Budget 2018: Cash-strapped MCDs get 13% of total budget

The two corporations have been facing a severe fund crunch since the unified MCD was trifurcated in 2012.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The AAP government allocated 13% of its total budget of Rs 53,000 crore to the municipal corporations, as it tabled its fourth budget in the Assembly on Thursday.

"The total financial support to local bodies in 2018-19 is Rs 6,903 crore, which is 13% of the total budget. The outlay is 9.88 %, higher than the funds given in the revised estimates of 2017-18," said Finance Minister Manish Sisodia in his budget speech.

Delhi has three municipal corporations -- North, South and East. However, of the three, while South is self-sufficient, North and East civic bodies are cash-strapped and have been struggling for funds even to pay their staff.

The two corporations have been facing a severe fund crunch since the unified MCD was trifurcated in 2012.

The Capital has witnessed two major strikes by safai karamcharies in the past three years bringing the entire city to a halt. The workers had not been paid their dues for months.

Earlier this month, East Corporation mayor Neema Bhagat along with councillors sat on a protest before the Delhi Secretariat demanding the city government to release funds of Rs 9,125 crores to pay salaries to staff.

The corporators demanded the government implement the recommendations of 4th Delhi Finance Commission (DFC) or provide them a loan of Rs 468 crore immediately so that they could pay outstanding salaries and other dues to its employees by March-end.

The trifurcation, corporation officials said, led to an unequal division of sources of revenue. "While the South got all the Type A and B properties for which the property taxes are much higher, the North and East Corporations were left with mid-level and lower property rates. The condition is such that the staff doesn't get their salaries for two months at a stretch," he added.

The civic bodies get grants to run the basic functioning such as paying the staff from the Delhi government. But, it claimed, Arvind Kejriwal-led AAP government had not released the grants to the corporations, which triggered the strikes.

A senior Corporation official, however, said, "At present it is not clear that what the government has proposed is over an above the existing global share of 9.5 % or including it. In case, it is additional, it is a good move while if not, then it does not make any difference to the struggling corporations."

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement