No new taxes in North MCD budget, focus on loans to fill revenue gaps

In its 2021-22 budget proposals presented on Tuesday, the North Delhi Municipal Corporation did not propose any new tax or hike in existing property tax slabs. The north corporation presented a total budget for Rs 9,205.96 crore, including Rs 3,445 crore loan.

The North Delhi Municipal Corporation did not propose any new measure to boost its revenue in the budget proposals for the financial year 2021-22 on Tuesday despite its liabilities going up by over Rs 1,345 crore. The civic body instead pinned its hopes on soft loans and old remunerative projects to fill the huge gap between actual income and deficit.

Ministerial staff, teachers and engineers in north corporation have not been paid for last three to four month. Similarly, salaries of doctors, nursing staff and paramedic employees are pending for two-three months. (PTI file photo)

In its 2021-22 budget proposals presented on Tuesday, the north civic body did not propose any new tax or hike in existing property tax slabs. The north corporation presented a total budget for Rs 9,205.96 crore, including Rs 3,445 crore loan.

The corporation, however, proposed to increase transfer duty by 1% for change in the title of properties worth more than Rs 25 lakh. This proposal was already passed by the civic body and is awaiting Delhi government’s approval.

According to budget estimates, the liabilities have increased to Rs 7,523.97 from Rs 6,176.32 crore from last year.

“Due to Covid-19 pandemic situation, the overall recovery in tax collection has been reduced. Our own remunerative projects to make the corporation self-reliant have also been slowed down due to Covid-19 pandemic and lockdown situations. So, a special alternate arrangement for special grant or interest free long term loan from state or union government be thought of,” additional commissioner Swati Sharma said while presenting the budget. North DMC commissioner Gyanesh Bharti has been infected with Covid-19.

Civic officials said that the property tax collection of the civic body has gone down due to the coronavirus pandemic. As per the budget estimates, there had been collection of Rs 388.55 crore as property tax till November 25 this year,which is Rs 25.53 crore less than last year during the same period. It stated that Rs 162.88 crore has been collected as transfer duty this year so far.

Officials said that due to the pandemic the civic body decided not to levy any new tax on the public and also made no proposal to increase property tax.

The municipality has not been able to pay salaries to its employees due to fund crunch. Ministerial staff, teachers and engineers in north corporation have not been paid for last three to four month. Similarly, salaries of doctors, nursing staff and paramedic employees are pending for two-three months.

The civic body said it will focus on its old remunerative projects to generate revenue. The remunerative projects which will be expedited to make the north corporation self-reliant include redevelopment of Azadpur and Model Town staff quarters, which is expected to bring revenue of Rs 6,939 crore and Rs 8453 crore by leasing those to government agencies. Another project include Minto Road staff quarters, which the Income Tax department has desired take on lease after redevelopment. The reserve price of this is Rs 3,900 crore (approx).

Officials said that the municipality has also decided to expedite the plan to provide parking for 12,915 cars by developing multi-level parkings at 17 locations.

To control air pollution, North civic body also proposed to set-up e-charging and battery swap stations for e-vehicles on roads in its jurisdiction at every three kilometres from a charging point.

Jai Prakash, mayor north corporation, said, “In this budget, an effort has been made not to put any additional burden of tax hike or new tax on the common man, who is already troubled due to the coronavirus pandemic. We will bridge the revenue gap by expediting our remunerative projects and through soft loan from the state or union government.”

Vikas Goel, an Aam Aadmi Party (AAP) councillor and leader of opposition in the municipality, termed the budget “disappointing”.

“There is nothing new in this budget as no new projects are announced. They have not even produced any progress report of the ongoing projects. There is noting for the public in the budget. They have also not suggested any new measure to enhance revenue and improve financial condition of the civic body,” Goel said.