Severe financial crunch leads to non-renewal of contractual staff
25 Feb 2015 1:16 AM GMT
The Commissioner has also ordered not to renew the contract period of such employees asking to carry on with available resources.
“The North MCD is facing serious financial crunch. It is hereby directed that henceforth proposal for engagement/extension of retired municipal employees either on contractual basis or engagement should not be retrogressed and put up before the undersigned. The persons who are already engaged on contract basis or engaged as consultant should be de-continued on completion of their sanctioned period,” the Commissioner said in circular.
The trifurcation of the erstwhile Municipal Corporation of Delhi has hampered finances of both North and East MCD which are running at a loss of nearly Rs 1,000 crore per year. The crisis could be judged from the fact that the agencies are not able to pay salaries to their employees. The bodies have also not disbursed old-age pension to thousands of people living in their area. As against expenditure of Rs 2,200 crore, the civic body is generating nearly Rs 1,300 crore per year.
With the North Corporation facing a severe shortage of funds, over 25,000 employees have been left in the lurch. Finance department officials said the civic body was not in a position to provide salaries to 60 per cent of its employees for the month of January. The Corporation, which disburses Rs 52 lakh pension per month, has also stopped disbursement since June last year. “At the time of trifurcation, the government assured to give grant and later it was turned into loan that led the agency in crisis. As we have limited sources of revenue generation, there is a huge gap between income and expenditure,” said Yogendra Chandolia, Mayor of the North MCD.
The East civic body’s situation is very similar to one faced by the North Corporation — both have been reeling under financial crisis since 2012, when the erstwhile Municipal Corporation of Delhi was trifurcated. As against the expenditure of Rs 1,200 crore per year, the revenue generation is nearly Rs 750 crore only.
“The government, at the time of trifurcation, had said the Corporation would receive Rs 421 crore as grant. However, we were given only Rs 325-335 crore as loan,” said BB Tyagi, Chairman of Standing Committee earlier.
Following the crisis, the department is also reported to issue circulars in the same line as that of the North MCD.
“The North MCD is facing serious financial crunch. It is hereby directed that henceforth proposal for engagement/extension of retired municipal employees either on contractual basis or engagement should not be retrogressed and put up before the undersigned. The persons who are already engaged on contract basis or engaged as consultant should be de-continued on completion of their sanctioned period,” the Commissioner said in circular.
The trifurcation of the erstwhile Municipal Corporation of Delhi has hampered finances of both North and East MCD which are running at a loss of nearly Rs 1,000 crore per year. The crisis could be judged from the fact that the agencies are not able to pay salaries to their employees. The bodies have also not disbursed old-age pension to thousands of people living in their area. As against expenditure of Rs 2,200 crore, the civic body is generating nearly Rs 1,300 crore per year.
With the North Corporation facing a severe shortage of funds, over 25,000 employees have been left in the lurch. Finance department officials said the civic body was not in a position to provide salaries to 60 per cent of its employees for the month of January. The Corporation, which disburses Rs 52 lakh pension per month, has also stopped disbursement since June last year. “At the time of trifurcation, the government assured to give grant and later it was turned into loan that led the agency in crisis. As we have limited sources of revenue generation, there is a huge gap between income and expenditure,” said Yogendra Chandolia, Mayor of the North MCD.
The East civic body’s situation is very similar to one faced by the North Corporation — both have been reeling under financial crisis since 2012, when the erstwhile Municipal Corporation of Delhi was trifurcated. As against the expenditure of Rs 1,200 crore per year, the revenue generation is nearly Rs 750 crore only.
“The government, at the time of trifurcation, had said the Corporation would receive Rs 421 crore as grant. However, we were given only Rs 325-335 crore as loan,” said BB Tyagi, Chairman of Standing Committee earlier.
Following the crisis, the department is also reported to issue circulars in the same line as that of the North MCD.
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