Unified MCD will work on combined budget from 3 erstwhile corporations
New delhi: The unified Municipal Corporation of Delhi has begun preparations for its first budget.
Senior officials from the MCD's financial department said since May 22, MCD officials have been reviewing all financial matters of the erstwhile civic bodies. They have been reviewing expenditures, salaries, account books, etc., to collect necessary data and are working on an integrated report that will be sent to appointed Special Officer Ashwani Kumar soon.
As per the official, this process won't be long like the usual budget sessions within the MCD. They explained that the lack of a deliberative wing and passed budgets from February will help in fast tracking the entire process. The unified budget should be finalised by next week.
Another senior official from the MCD explained that the passed budget from the erstwhile corporations as a base for the budget. They added that the final budget will be an amalgamation of the budgets from the three civic bodies. The trifurcated civic bodies had presented a budget of 4,830 crore (South MCD), 4,735 crore (East MCD) and 7,504 crore (North MCD) in February. The budget will be a combined figure of the three civic bodies financial accounts.
Another important thing that the upcoming budget will denote is a possible unified policy on taxes rates for the civic body. The erstwhile corporation had different tax rates; both residential and commercial, as per sources a unified policy should be expected from the MCD soon. Speculations have been made regarding a hike in tax rates, however, officials from the MCD said there is no confirmation on this.
MCD was reunified on May 22, 2022 as per the Delhi Municipal Corporation (Amendment) Act 2022 after serving as three civic bodies; North, South and East for 10 years.
Meanwhile, the AAP has written to MCD special officer Ashwani Kumar seeking time for an appointment to plug loopholes in the collection of house tax by the civic body. AAP has opposed the alleged hike in house tax. AAP MCD in-charge Durgesh Pathak said that the MCD which has a potential of collecting house tax worth Rs 4,700 crore from the 27.5 lakh registered properties has only been able to put Rs 1,750 crore in the treasuries. The leader has blamed the BJP-led MCD for its corruption in this deficit.
Pathak said, "If this enormous gap between the expected revenue, and the actual amount MCD collects is filled, there would be no need to increase the house tax. AAP has a number of suggestions which it would like to discuss with Ashwini Kumar; I am hopeful he will take out time for a meeting."
Through his letter Pathak has requested MCD special commissioner for a meeting along with his team in which he intends to discuss ways to improve the collection process of the MCD.
Pathak added that the residents of Delhi are already facing financial distress as a result of the pandemic leading to a loss in jobs and decrease in income. "An increase in the house tax will be a new form of financial torture for Delhiites," he said.
