The Hindu : New Delhi News : `Panel report will weaken MCD'

Online edition of India's National Newspaper
Wednesday, Apr 07, 2004

New Delhi

New Delhi

`Panel report will weaken MCD'

By Our Staff Reporter

NEW DELHI, APRIL 6. Recommendations of the Second Delhi Finance Commission if implemented would weaken the financial strength of the Municipal Corporation of Delhi, the opposition Bharatiya Janata Party in the MCD alleged today.

Addressing a press conference, the Rohini Councillor and Delhi BJP secretary, Vijender Kumar Gupta, claimed that the Commission in its report, which was tabled in the Delhi Assembly recently, had recommended that several functions of the civic body like work relating to issue of factory and food licenses, old-age and widow pension, maintenance and constructions of rest houses, shelter homes for the poor, and 100-bed plus hospitals be transferred to the Delhi Government.

"This is a clear infringement of the rights and duties of the MCD. These recommendations are only aimed at killing grass-roots democracy of the country," Mr. Gupta alleged and claimed that the report was passed in a haste hurry during the recent two-day session of the Delhi Assembly.

Referring to the recommendations of the Finance Commission for levying new taxes like tax on professions, trades, callings and employment, tax on increase in urban land value, review of rates of fees / fines and land, Mr. Gupta claimed that the imposition of such tax would put heavy burden on the people of the Capital.

He opposed the recommendation that the Delhi Government should impose 16 per cent interest on the loan given to MCD at a time when the market interest rates had dropped very sharply. He said the recommendations were silent on the point of recovery from the Delhi Government in respect of arrears of house tax and electricity tax.

"Instead of suggesting practical ways and means to increase the financial condition of the MCD, the Second Finance Commission has recommended to squeeze its present source of income," he alleged. "Against the present education grants at the rate of 60 per cent, the MCD had demanded 95 per cent. This demand has been turned down. However, it has been kept as 70 percent only. Out of which, five per cent is to be kept for maintenance exclusively," he said.

Mr. Gupta alleged that all this was politically motivated, as the Delhi Government was not interested in strengthening civic bodies in the Capital. "The recommendations of the report seems only indicating towards this," he claimed.

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