North MCD’s revenue collection graph going down for 3 years

The North MCD, which covers almost half area of the Capital, has been blaming the Delhi government for their financial crisis but a close look into their accounts revealed that they have fallen short of collecting their targeted revenue since the last three financial years. Furthermore, the actual revenue collection also shows a sinking trend during these years.

As per the data, the North Corporation generated a revenue of Rs 2,924.42 crore in the year 2012-13 against the estimated Rs 3,7712.09 crore. In year 2013-14 actual income was Rs 2,368.33 against the estimated Rs 3,457.41 and in the year 2014-15 it was Rs 2,376.61 against Rs 3,612.04. Shockingly, the Corporation’s revenue has gone down to whopping Rs 547 crore during the current financial year in comparison to the first financial year after trifurcation. 

“Though taxes are being hiked, resources have been developed and area of tax collections have been expanded but the revenue is declining. The departments must take it seriously, otherwise the shutters of the Corporation will be closed one day,” said Mukesh Goel, Leader of Opposition (LoP).

The financial crisis has not just affected payments of salaries of nearly 70,000 staff, old-age pensions to 80,000 poor people, pension to retired employees, arrears but have also affected other areas too. As per reports, contractors have not been paid since August 2014. No recruitment has taken place for the last couple of years. Retired employees are not getting terminal benefits. A total of Rs 550 crore has been borrowed from GPF fund of employees to meet daily expenses and Rs 376.4 crore has been marked as internal loans.

Additionally, the property tax target does not seem achievable hence, it was reduced from Rs 570.6 crore to Rs 400 crore. Recovery in ex-parte cases of property tax prior to year 2000 amounting to Rs 300 crore and more than Rs 700 crore is to be recovered from govt/semi govt/PSUs for property tax but no move has been initiated to recover this amount. 

Only 50 per cent tax has been collected from advertisements. Much talked about projects — Mahila Haat and High End Toilets — are yet to function properly. Recovery for car parking is mere Rs 17.46 crore against Rs 60 crore in 2014-15 and Rs 8.80 crore this year against the target of Rs 40 crore.