MCD Budget: Sanitation gets maximum allocation

New Delhi: The Municipal Corporation of Delhi has finalised the budgetary estimates of ₹15,276 crore for the financial year 2022-23, with sanitation measures getting the maximum allocation of 27

New Delhi: The Municipal Corporation of Delhi has finalised the budgetary estimates of ₹15,276 crore for the financial year 2022-23, with sanitation measures getting the maximum allocation of 27.9%, according to the Budget estimates cleared by the special officer.

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This marks another phase in the evolution of the unification of the three civic bodies -- East Delhi Municipal Corporation, North Delhi Municipal Corporation and South Delhi Municipal Corporation. The three civic bodies were unified by the Centre on May 22. The unified body is headed by a special officer and a commissioner, both appointed by the Centre. As of now, there is no deliberative or an elected wing of councillors. The special officer is discharging the responsibilities of the elected wing.

Before finalising the Budget, the MCD has streamlined the disparate rates of various taxes such as property tax, general trade licence fee, health trade licence fee, etc, and made them uniform across the city.

The three civic bodies had finalised their budgets in February but the unified MCD has cut the expenditure of Rs1,118 crore cleared by then councillors under the heads of councillor development funds, inter-corporation expenses and discretionary spending.

According to the Budget estimates, a copy of which HT has seen, the MCD will spend 21.11% for the general administration, 17.23% on education,11.34% on public works and streetlighting and 11.34% on public health and medical relief. Other sectors such as horticulture, veterinary services, community services have all been allocated less than 5% each.

An MCD official, who was associated with the Budget making process, said municipal budget takes nearly four months since and detailed reports about projects, incomes and expenses are sought from each department. “These reports were then revised by various committees and finally by the councillors. However, since now we don’t have the elected wing, the special officer has cleared the Budget estimates. Since the unified MCD came into existence on May 22, the Budget will come into force from that date. We have completed the process by merging the heads of accounts and worked out a uniform nomenclature for allocations heads. Discretionary funding has been drastically reduced,” the official said.

Before the unification, the three civic bodies had passed their respective budgets for 2022-23 in February, with a total sum of Rs. ₹16393.99 crores.

The North MCD had passed a budget of Rs7,504.91 crore, the South MCD cleared a ₹4,915.57 crore budget and the East MCD sanctioned a ₹3,970.50 crore budget, the MCD official said.

Explaining the difference of nearly Rs1,000 crore in the unified body, the official said, “ ₹1118 crore have been cut mostly from reducing the deliberative wing expenses on offices, government vehicles, and staff by one third, slashing the councillor funds by half and avoiding inter-corporation expenses,” the official explained.

Since the special officer represents the councillors, the expenses related to projects in municipal wards are now cleared by him.

The three MCDs had a combined liabilities of more than Rs16,000 crore, and while unifying them the Centre had argued that financial problems have left the civic bodies unable to carry out their basic functions as well as pay regular salaries to their staff.

AP Khan, president of the Confederation of MCD Employees Unions said that the Centre should release a one-time financial package to remove MCDs liabilities, otherwise the purpose of unification will be defeated.

“Post-retirement benefits like GPF gratuity are pending from several years. Salaries of East MCD employees have a pendency of four months while North MCD workers have one month pendency. A liability gap of ₹16,400 cr was reported at the time of unification and Centre should provide a one time relief to bring everyone at par and bring corporation on track. The political purpose of unification has been achieved but the real benefits for employees and citizens of Delhi still remains pending,” Khan said.

Khan also suggested that while the funds of various heads are being merged, the unified body should also consider utilization of the fixed deposit made by erstwhile SDMC during its better financial years.