Facing the prospects of a huge deficit in the collection of property tax for the second time in a row, the Municipal Corporation of Delhi (MCD) on Friday approached the Delhi government for financial aid. The corporation told the state government that it should make up for the deficit, lest the developmental projects would be hampered.
DPCC president Ram Babu Sharma, Leader of the House in MCD Jitender Kocchar and Standing Committee chairman JK Sharma along with several councilors asked finance minister AK Walia to bail them out at this juncture.
Sharma said: "When the Unit Area Method for property tax was introduced in the MCD, the Delhi government had promised that it would pitch in with the finances if there was a shortfall of collection”. He said, the collection has been below expectations and the government should now fulfill its promise.
Kochhar gave details of the shortfall. "We have only managed to collect Rs 378 crore this year, in which Rs 157 crore came from transfer duty," he said. The Leader of the House said MCD was facing a massive shortfall as the target is Rs 1400 crore. In the last financial year, the corporation managed to get only Rs 800 crore even as the target was Rs 1400 crore.
The MCD team said with the elections approaching, they need to complete certain projects. “We have come to ask for at least Rs 200 crore," said Kocchar.
The government was non-committal on the latest financial demand of the MCD. Some of the ministers hold the view that it was a fruitless exercise to pump in money in more money in the civic body as it needs a drastic overhaul.
Finance Minister AK Walia said, "the proposal of MCD was discussed at length. Other departments will examine it too. We would not allow any shortage of funds to the MCD”.
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