The Government will set up fifth Delhi Finance Commission whereas the recommendation of fourth Delhi Finance Commission has not been promulgated yet. A proposal to setting up Fifth Delhi Finance Commission is likely to be brought before the Cabinet meeting on Tuesday with former Secretary (Urban Development) Sudhir Krishna is likely to be its chairman, according to sources.
The Commission is being set up to review the financial position of the Delhi Government and three municipal corporations and to make recommendation. It will examine and recommend on the distribution between the State Government and the municipalities of the net proceeds of the taxes, duties, fees leviable by the Delhi Government which may be divided between them.
The Commission will also review the grants in aid to the municipalities from the consolidated fund of the national Capital territory of Delhi.
Sources said the Delhi Government is bound to set up fifth Delhi Finance Commission by April as it is a statutory body. “Former Union Urban Development Secretary Sudhir Krishna is likely to be chairman of the fifth Finance Commission of Delhi,” sources said.
Also, the Commission shall consider revenue expenditure (such as the wage bill), expenditure on discretionary responsibilities vis-a-vis core responsibilities (such as discretionary fund of MCD Councillors) related to sanitation, street lighting, primary health, primary education and storm water drains, and; third, the steps taken to compress unproductive expenditure.
PS Bhatnagar was the chairman of the fourth Delhi Finance Commission which was recently tabled in the Delhi Assembly. BJP ruled MCDs are demanding implementations of the recommendations.
On the other hand, the Delhi Government said it is ready to accept the implementation of the recommendations of the fourth finance commission if the Ministry of Urban Development ensures that they do not deal with the matters relating to Constitution and powers of the municipalities and other local authorities of the Union Territory.
Also it wants the Centre to hold the DDA responsible for infrastructure deficits in terms of requirements for municipal services despite its paying the deficiency charges to other local authorities and should compensate the MCD for being forced to bear the burnt of providing infrastructure deficits out of their resources.