1. Arvind Kejriwal Delhi govt may have to foot MCD bills

Arvind Kejriwal Delhi govt may have to foot MCD bills

Arvind Kejriwal led Delhi government, which has been trying to wash its hands of the financial woes of municipal corporations blaming the Centre, may soon find itself footing the bill.

By: | Updated: May 12, 2015 10:52 AM
Arvind Kejriwal MCD bills

A source in the government said the Fourth Finance Commission report on sharing of funds would make Arvind Kejriwal led Delhi government responsible for the financial health of the corporations. (PTI)

Arvind Kejriwal led Delhi government, which has been trying to wash its hands of the financial woes of municipal corporations blaming the Centre, may soon find itself footing the bill.

A source in the government said the Fourth Finance Commission report on sharing of funds would make the Delhi government responsible for the financial health of the corporations, all of which are currently ruled by the Bharatiya Janata Party (BJP).

It has been learnt that the report has recommended, among other points, that the total expenditure on education be borne by the government even if they are run by the corporations.

The government’s responsibilities will cover all the “infrastructure of schools, such as the building, staff salary, desks and books,” the source said.

It is also learnt that the report is likely to contain measures on how to help the municipalities by allocating an annual budget for them.

It is suggested that the percentage share of funds in the divisible pool should not be apportioned on the existing 70:30 formula but on the basis of the financial health of a particular corporation.

It is also likely that when the percentage share is calculated, motor tax, betting tax and entertainment tax will not be included, as they have been deemed as belonging to the corporations.

This, sources said, tilts the recommendations in favour of North and East Delhi corporations as they are most financially strained. The report is also said to recommend that Delhi will have to bear a major portion of losses of a corporation if the Centre fails to release funds.

The report has recommended the creation Delhi Guards Services for a specific period. The role of these guards will be to assist corporation officials in removing encroachments, as “police help does not reach the government in time when action is needed”.

Apart form this, there may be recommendations for creating other departments related specifically to environment and healthcare.

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