South MCD seeks speedy release of funds from Delhi government
12 March 2015 5:06 AM IST
The Corporation has said that due to unnecessary delay of funds, especially grants and shares, the developmental works have been hampered. The Corporation also alleged that the government has stopped putting in their shares, despite their earlier assurances – thereby making the execution of pending works and bearing expenses rather difficult.
Subhash Arya, chairman of the Standing Committee said that the Corporation has written a letter to the Urban Development Minister, Delhi, for the immediate release of all grants under various sections. “After the implementation of the ‘Unit Area Method’ in 2004, the then government had assured us of compensation for the losses due to its implementation, but they are pending since 2005-06,” said Arya.
He further informed that till 2007-08, the Delhi government was offering a 5.5 per cent to the Municipal Corporations under ‘Global Share of Taxes’.
It was then reduced to four per cent, with 1.5 per cent being kept under the ‘Municipal Reform Fund’. In 2012-13, Rs 60 crore was released against a demand of Rs 135 crore and ever since 2013-14, no money has been released.
“Corporations are carrying out works in authorised colonies, unauthorised colonies and rural village areas. Under the schemes, there are plans for multi-level parking, roads, schools, bridges, community centres and RUB, but because the government is not releasing the funds, the projects are being delayed,” he added.
In may be noted that after trifurcation in the year 2012, the financial condition of corporation furthered weakens due to transfer of services.
Delhi government assured that three corporations will be made loan free at the time of
trifurcation which was not done by the then government. Post the trifurcation the government stopped timely release of Municipal Reform Fund, Development Fund for projects, Global Share and different loans. This leads to financial crises in East MCD and North MCD, officials in the department said.
Subhash Arya, chairman of the Standing Committee said that the Corporation has written a letter to the Urban Development Minister, Delhi, for the immediate release of all grants under various sections. “After the implementation of the ‘Unit Area Method’ in 2004, the then government had assured us of compensation for the losses due to its implementation, but they are pending since 2005-06,” said Arya.
He further informed that till 2007-08, the Delhi government was offering a 5.5 per cent to the Municipal Corporations under ‘Global Share of Taxes’.
It was then reduced to four per cent, with 1.5 per cent being kept under the ‘Municipal Reform Fund’. In 2012-13, Rs 60 crore was released against a demand of Rs 135 crore and ever since 2013-14, no money has been released.
“Corporations are carrying out works in authorised colonies, unauthorised colonies and rural village areas. Under the schemes, there are plans for multi-level parking, roads, schools, bridges, community centres and RUB, but because the government is not releasing the funds, the projects are being delayed,” he added.
In may be noted that after trifurcation in the year 2012, the financial condition of corporation furthered weakens due to transfer of services.
Delhi government assured that three corporations will be made loan free at the time of
trifurcation which was not done by the then government. Post the trifurcation the government stopped timely release of Municipal Reform Fund, Development Fund for projects, Global Share and different loans. This leads to financial crises in East MCD and North MCD, officials in the department said.
Next Story
