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MCD’s Rs 7,000-crore budget

delhi Updated: Feb 13, 2011 23:10 IST
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The BJP-led MCD might be making tall promises of carrying out more developmental work ahead of the local elections in 2012, but their financial position has a different story to tell. According to sources, the MCD is planning to finalise a budget of Rs 7,011 crore, but has managed to earn merely Rs 2,283 crore in the past six months.

And the civic agency is still to learn a lesson from its past mistakes. Last year, too, it had passed a budget estimate of R6,828 crore but was able to spend only Rs 3,638 crore.

The organisation is already facing a huge financial crisis with liabilities worth R2,183 crore and R686 crore still left to be paid to municipal contractors apart from pensions to senior citizens and widows. Add to it the requirement of R2,000 crore to bail itself out from the current financial crisis.

“We have not been able to augment our revenue and despite that, we have increased the budget allocation on a number of projects including carrying out development work in urbanised villages and constructing new toilet blocks among others,” said Jagdish Mamgain, chairman of the Works Committee of the MCD.

According to councillor Farhan Suri, one of the chief reasons behind the inflated figure of R7,011 crore is increased allocations to areas like solar energy and employee training that have seen little expenditure in two years. “All they do is make false promises. The MCD has not spent any money in these areas and yet has increased their budget share,” he said.

But the civic agency is hoping that the Delhi government will release its dues of Rs 570 crore. “The Delhi government has not released Rs 570 crore which it owes us. Also, we will be getting Rs 600 crore from

the Civic Centre. We are hoping to increase our revenue and spend it on developmental works,” said Yogender Chandolia, chairman of the MCD’s Standing Committee.

A special meeting of the MCD will be held on Monday to finalise the revised budget estimates for the year 2010-2011 and the budget estimates for the year 2011-2012.

CM gets powers to divide MCD

A week after Chief Minister Sheila Dikshit sought the trifurcation of the BJP-ruled MCD, the Centre has held that the Delhi Government has powers to go ahead with the proposal. “The Delhi Chief Minister had sought enhanced delegation of these powers over a year-and a-half-ago, which have now been delegated to the Delhi Government,” Union Home Secretary GK Pillai. PTI