Millennium Post

SDMC expresses concern over its financial health

SDMC expresses concern over its financial health

New Delhi: SDMC Mayor Narendra Kumar Chawla on Thursday addressed a letter to Delhi Chief Minister Arvind Kejriwal, expressing his concern over the affect on the financial health of the SDMC in case the 5th DFC is implemented as per determined principle.

It has been stated in the letter that implementation of the recommendations of the 5th DFC will result in reduction of Rs 1,300 crore per year in SDMC's share of Grant-in-Aid.

The provision for allocation of funds under non -plan and plan schemes has been clubbed together by the 5th DFC which used to be separate earlier and due to which the allocation of the funds to SDMC is bound to be curtailed to meager 39.19 percent of 3 percent of Net Tax collection of Delhi government.

Chawla further stated that at present the share of funds to be allocated to SDMC under this scheme is not clear as 6.5 percent of net tax collection shall be devolved for schemes under health education and UD sectors only after due consultations with health, education finance, UD Departments as well as local bodies.

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