Fourth finance panel report: Delhi goverment may have to foot MCD bills

The Delhi government, which has been trying to wash its hands of the financial woes of municipal corporations blaming the Centre, may soon find itself footing the bill.

Written by Pragya Kaushika | New Delhi | Published:May 12, 2015 3:46 am

The Delhi government, which has been trying to wash its hands of the financial woes of municipal corporations blaming the Centre, may soon find itself footing the bill.

A source in the government said the Fourth Finance Commission report on sharing of funds would make the Delhi government responsible for the financial health of the corporations, all of which are currently ruled by the BJP.

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It has been learnt that the report has recommended, among other points, that the total expenditure on education be borne by the government even if they are run by the corporations.

The government’s responsibilities will cover all the “infrastructure of schools, such as the building, staff salary, desks and books,” the source said.

It is also learnt that the report is likely to contain measures on how to help the municipalities by allocating an annual budget for them.

It is suggested that the percentage share of funds in the divisible pool should not be apportioned on the existing 70:30 formula but on the basis of the financial health of a particular corporation.

It is also likely that when the percentage share is calculated, motor tax, betting tax and entertainment tax will not be included, as they have been deemed as belonging to the corporations.

This, sources said, tilts the recommendations in favour of North and East Delhi corporations as they are most financially strained. The report is also said to recommend that Delhi will have to bear a major portion of losses of a corporation if the Centre fails to release funds.

The report has recommended the creation Delhi Guards Services for a specific period. The role of these guards will be to assist corporation officials in removing encroachments, as “police help does not reach the government in time when action is needed”.

Apart form this, there may be recommendations for creating other departments related specifically to environment and healthcare.

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  1. R
    Rahul
    May 12, 2015 at 7:17 am
    BJP is the most incompetant party. It cant even run a BMC or MCD and stupid people think they can run a country.
    Reply
  2. R
    Rishi
    May 12, 2015 at 7:19 am
    MCD ruled by BJP for last 7 years, how is AAP responsible for its losses? It is bcoz of Biased articles like these that AAP diktat against Media has support among people. If there is anybody who is washing off their hands, it is Nalayak Modi Govt
    Reply