Corporation targets Rs 105 cr through revenue

In his budget speech, the Commissioner pointed out that in the year 1999-2000, education and sanitation would receive top priority. The highest amount has been allocated for education, a sum of Rs 250.05 crore, which amounts to 18.45 per cent of the budget. On sanitation, the corporation will spend Rs 240.98 crore, that is, 17.78 per cent of the budget.

Other expenses in the year 1999-2000 include Rs 189.44 crore on repayment of loans, Rs 140.92 crore on pensions and arrears under the 5th Pay Commission, Rs 121.50 crore on roads, Rs 119.49 crore on medical relief and Rs 37.37 crore on public health. Along with the budget proposals for the next year, the revised budget estimates for 1998-99 were also placed before the Standing Committee. Explaining the marginal decrease of Rs 30 crore in the budget from last year, Duggal said that this was because of the decrease in electricity taxes as there were no more arrears, apart from an expected decrease in the income from the Remunerative Project Cell from sale of land and buildings as there was no more land available and reduction in Ways and Means Loan from Rs 140 crore to Rs 45 crore.

To augment the income, Duggal said that the MCD proposes to levy toll tax on commercial vehicles entering Delhi. The MCD hopes to generate at least Rs 50 crore under this head. The corporation hopes to generate another Rs 50 crore by levying misuse charges on encroachments on municipal land by factory owners and industrialists.

He also proposed an increase in penalties, most of which were fixed in 1957. Since it would need to be approved by the Parliament, a small provision of Rs five crore has been made in the budget under this head. Duggal also said that they were planning a detailed survey of properties, which would lead to a substantial increase in income in the years to come. He added that the corporation was planning to ask the Delhi government to give Plan support in the form of grants without any loan component. At present, the plan loans stand at Rs 490 crore. Expressing concern at the proposed deduction of Rs 228 crore from the MCD’s grants, he said that this would cause a payments crisis. Therefore, they had requested the government to defer the loans to the extent of Rs 200 crore and make them payable in 20 years.

Duggal said that they had also requested the government not to reduce the approved outlay in the current year. He pointed out that contrary to common belief, the MCD’s expenditure on establishment is not high. They spent Rs 29.33 crore on general establishment as compared to Rs 603.05 crore spent on service establishment like teachers, doctors and safai karamcharis.

A comparison of the income and expenditure estimates shows a resource gap of Rs 226.80 crore in 1998-99 and Rs 232.50 crore during 1999-2000. In view of this, the MCD has allocated Rs 10.50 crore for new works, 14.40 crore for repair and maintenance of roads, Rs 1.50 crore for repair of school buildings, Rs 1 crore for repair and maintenance of hospital buildings and Rs 0.22 crore for repair and maintenance of the drainage system.