After the North Delhi Municipal Corporation presented a budget with a deficit of Rs 2,700 crore, the East Delhi civic body on Tuesday presented budget estimates for the next financial year with a deficit of over Rs 2,100 crore.
Deficits have spiked sharply since 2013 with the first budget after trifurcation projecting losses of Rs 203 crore. In the second budget, losses rose to Rs 306 crore in 2014-15 and now projected losses are at Rs 2,196 crore.
Presenting the budget to members of the East civic body, commissioner Amit Yadav said, “Today, the East DMC is unable to pay even salaries and retrial benefits to its employees as all options for loans from the sources have been exhausted and it would be facing an uphill task of implementing the Seventh Pay Commission recommendations.”
The estimated burden the implementation of pay commission recommendations puts on the East civic body is approximately Rs 300 crore per year. The East corporation at this stage “requires serious support from the government to provide quality municipal service to the city,” Yadav said.
With more than Rs 1,500 crore due in contractors’ payments, employee arrears and unpaid salaries of group A and B employees for the last two months, the commissioner has proposed that “the EDMC impose all taxes assigned to it as per the DMC Act” and increase tax amount “in line with national consumer price index,” since the date of its last increase.
Additionally, the budget proposes that all exemptions and concessions be kept in abeyance for all taxes, fees and fines and that the East corporation should be allowed to collect taxes as proposed by the Fourth Delhi Finance Commission.