The Hindu : New Delhi News : No new taxes proposed in MCD revised budget estimates

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Tuesday, Dec 11, 2007
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No new taxes proposed in MCD revised budget estimates

Staff Reporter

Civic body to redevelop ‘special areas’ under Master Plan

In the current financial year the income has been estimated to be Rs.3,450 crore
‘MCD is financially self-reliant and can continue developmental work without any loans’

NEW DELHI: The revised budget estimates for 2007-2008 for the Municipal Corporation of Delhi were presented by Municipal Commissioner Ashok Kumar Nigam at a special meeting of the Standing Committee here on Monday.

The highlights of the budget estimates were that no new taxes were proposed and that the civic body was self-sufficient as far as the issue of funds was concerned -- i.e. there was no requirement to take loans from external sources for the purpose of development. Mr. Nigam said the income of the MCD in the year 2006-2007 was over Rs.2,807 crore while the expenditure was over Rs.2,248 crore.

“In the current financial year—2007-2008—the income has been estimated to be Rs.3,450 crore. This increase in income compared with last year is chiefly due to the Advertising Department and recovery of arrears of electricity tax and property tax.”

The Commissioner informed that it was a matter of “great honour” that the civic body had been entrusted with the task of redeveloping “special areas” under the Master Plan for Delhi-2021. He also commended the role of property tax in supplementing the MCD’s revenue. “The income from property tax is increasing. Last year, we recovered Rs.509 crore by way of property tax and this year the collection had increased to Rs.575 crore. This is because an effective recovery has been exacted out from Government Departments.”

Mr. Nigam also lauded the planning and implementation of several other schemes that had raked in funds for the civic body including multi-level parking, reworking of advertising policy, revamping of toilet blocks and computerisation of various departments and the provision of paying property tax online.

While praising the budget proposals, Standing Committee Chairman Vijender Gupta said it included various discussions and decisions that had taken place at meetings and that it was indeed “nice” to view a budget without any proposal for a new tax.

“The best thing is that the MCD is financially self-reliant and can continue developmental work without any external loans. In the past ten years, we were taking loans and paying heavy interest on them.”

Primary education

Mr. Gupta further disclosed that compared with the current financial year, increased provisions had been made for the year 2008-2009 in the field of primary education, medical relief and public health, environment management services, street lighting and horticulture. However, he said the budget will be discussed at the nest few meetings to carry out minor modifications after in which it shall be officially passed.

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