Amidst MC calls for more revenue, Delhi commission to study its financial status

With the Municipal Corporation's seeking an increase in revenue share from taxes collected in the city, the Fourth Delhi Finance Commission has decided to conduct a study on the civic body's financial status. Hired consultants are set to examine the financial accounts of the Administration and the MC for the last five financial years and based on a report, the civic body's revenue share will be decided. Tenders, to hire the consultants, were floated recently.

Among other things, the consultants will ascertain the Municipal Corporation's revenue deficit in each financial year, keeping in view the civic body's functions. The list of taxes, duties, tolls and fees would be classified into two segments: into those that have been effectively exploited and the other where full potential of assigned resources is yet to be achieved.

The expenditure, incurred by the Municipal Corporation in rendering services like collection and disposal of solid waste, water management, streetlighting, among others, will be looked into while a list of debts, indicating details and dates of repayment, will be prepared.

When members of the Delhi Finance Commission visited the city last year, the MC had demanded an increase in share of taxes that it receives from the Administration. The Commission now wants to look into the projected resource gap and the efforts made by the Municipal Corporation in making use of sources of revenue. Along with this, the resources and development plans of the city as a whole would be looked into to decide on the grant-in-aid from the Consolidated Fund.

The Municipal Corporation receives grants from the Administration apart from generating revenue from its own departments. The primary source of revenue generation for the civic body is through water bills, sewerage cess, estate receipts and property tax on commercial property. The estimated income amounts to Rs 123 crore. Over the past few years there has not been a substantial increase in the revenue receipts of the civic body. In fact even the expected revenue is not collected in toto.

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