Delhi government accepts fifth finance panel report, says more funds to MCDs | Latest News Delhi - Hindustan Times
close_game
close_game

Delhi government accepts fifth finance panel report, says more funds to MCDs

Hindustan Times, New Delhi | By
Jan 04, 2019 02:47 PM IST

Accepting more than half of the DFC’s recommendations, the Delhi government said it would give 12.5% of its total tax collection to the city’s five civic bodies. T

The Delhi government on Thursday accepted key recommendations of the Fifth Delhi Finance Commission (DFC), which, among other things, it says, would ensure more cash flow to the fund-starved municipal corporations.

Deputy Chief Minister Manish Sisodia seen with other AAP MLAs during Delhi Assembly session, at Delhi Vidhan Sabha, in New Delhi, on Thursday, January 3, 2019.(Sushil Kumar/HT PHOTO)
Deputy Chief Minister Manish Sisodia seen with other AAP MLAs during Delhi Assembly session, at Delhi Vidhan Sabha, in New Delhi, on Thursday, January 3, 2019.(Sushil Kumar/HT PHOTO)

The assembly adopted an action taken report tabled by urban development minister Satyendar Jain on the commission’s recommendations.

Hindustan Times - your fastest source for breaking news! Read now.

Accepting more than half of the DFC’s recommendations, the government said it would give 12.5% of its total tax collection to the city’s five civic bodies. This new format will be effective from April 1, 2016, which means employees of the civic agencies will get arrears too, the government said.

The minister said the tax share was currently 10.5% as per the third DFC’s recommendations. The hike would help the corporations, specially East Delhi Municipal Corporation (EDMC) and North Delhi Municipal Corporation (North MCD), to recover their deficits.

The EDMC has been asking for 10,228 crore from the government and the North MCD 1,531 crore as per the fourth DFC’s recommendations. Till now, municipal employees were being paid as per the third DFC.

The government’s move comes five days ahead of a hearing on the matter in the Dehi high court. The court had on December 20 told the AAP government that it was liable to pay the three corporations in accordance with the fourth commission’s recommendations.

In the House, Jain also tabled the government’s action taken report on the fourth DFC, which he said cannot be implemented as the Centre refused to accept a part of its recommendations.

“In any case, the government has released more funds to municipal corporations ranging from 14 to 17%, which we have decided not to recover from them. The Delhi government provided 17.6% of its budget to the MCDs in 2012-13, 16.11% in 2013-14, 15.34% in 2014-15, and 14.40% in 2015-16,” he said.

Presenting the fifth DFC report, the minister said the 12.5% tax collection share that will be transferred to the local bodies will be divided into two parts.

“Six per cent will be broken down into 3% each. Of this 3%, EDMC will receive 65% and 35% will go to the North MCD. The other 3% will be meant for all the local bodies, including the New Delhi Municipal Council and the Delhi Cantonment Board (DCB). The remaining 6.5% of the 12.5% will be devolved to the local bodies through budgetary provisions of different departments,” Jain said.

The report said DCB will be included in the commission for the first time.

Leader of Opposition Vijender Gupta, however, said the South Delhi Municipal Corporation’s share has been substantially reduced under the fifth DFC’s recommendations and would make it cash-strapped.

“The government misrepresented facts and figures in the Assembly. It said funds had been increased from 10.5% to 12.5%. The fact is funds have been reduced from 17 to 12.5%. It will cripple the local bodies,” he said, adding he would reveal details on Friday.

The House was informed that 171 recommendations were made by the fifth DFC, out of which 88 were accepted by the government. Twenty related to devolution of funds were accepted with amendments, 13 were sent to local bodies for acceptance, 17 were referred to committees and 29 were rejected.

The fourth DFC, which the Delhi cabinet decided not to implement, recommended the Delhi government’s control over local bodies, including the corporations and the Delhi Development Authority. Jain said the Centre refused to accept these points.

Unveiling 'Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!
SHARE THIS ARTICLE ON
Share this article
  • ABOUT THE AUTHOR
    author-default-90x90

    Sweta Goswami writes on politics, urban development, transportation, energy and social welfare. Based in Delhi, she tracks government policies and suggests corrections based on public feedback and on-ground implementation through her reports. She has also covered the Aam Aadmi Party (AAP) since its inception.

SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Friday, March 29, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On