A close look at the North Delhi Municipal Corporation (NMC) budget for financial year 2016-17 shows that the corporation is on the verge of bankruptcy. NMC Commissioner Praveen Gupta while presenting the budget on Tuesday, proposed a hike in property taxes in various categories for the next financial year in a bid to generate revenue.
The NMC faces a fiscal deficit of Rs2,753 crore due to outstanding dues for contractors, safai karamcharis and implementation of recommendations of 7th Pay Commission.
The North Corporation claimed that once 7th Pay Commission is implemented, it will incur a burden of Rs500 crore. In addition, the corporation is to pay Rs300 crore to the contractors, Rs200 crore for safai karamcharis’ arrears and other miscellaneous areas.
The Commissioner, while proposing hike in budget proposals also claimed to allocate a huge proportion of money over ‘Swachchh Delhi Mission” and rural infrastructure. The Corporation, which provides civic facilities to a big chunk of the Capital, has said they are making all efforts to overcome deficit and for this tax hike in mandatory.
While presenting the revised budget of Rs6,031 crore, Gupta said the civic body is under grave financial crisis since its trifurcation in 2012. The estimated loss of year 2015-16 is Rs700 crore while in 2014-15 it was Rs475 crore. In 2013-14 and in 2012-13 it was figured Rs540 and Rs790 crore respectively.
In residential properties, the Commissioner proposed two per cent hike in A and B categories, one per cent hike in C, D and E categories. Though there is no hike proposed in special non-residential properties but several categories, which were exempted earlier, were included. “The agency is running in loss and the need of the day is to increase its revenue. Besides proposing new tax slabs, we have been working on new policies for parking and advertisement as both are major source of income for the Corporation,” said the Commissioner.
The corporation is also planning to construct a multi-level parking facilities in Gandhi Maidan apart from the three in Shalimar Bagh, Karol Bagh and Old Delhi railway station area. The civic agency also assured to improve health facilities major hospitals fall in its jurisdiction. For education sector, it announced several initiatives and opening of over a dozen of schools by next year.
Revised budget also emphasised over sanitation across the city. Focus was laid over integrated system of waste management including collection, transpiration, recycling and energy generation through it.
“In NMC area, a total of 3,400 metric tonne garbage generates daily and it is ecpected to touch 7,500 metric tonne by year 2021 hence there is a need to create a proper system. For this purpose we have been planning to revive landfill sites especially Bhalaswa site. The agency is also looking for 5-acre site for garbage disposal. From rickshaws to trucks, additional resources are being added for an effient system. Agency has been working on new waste-to-energy plants,” Gupta said.
leader of Opposition Mukesh Goel, however, rejected the move. “The budget proposals presented by the Municipal Commissioner will burn a hole in the pocket of the citizens. Instead of increasing administration’s efficiency, the Corporation is using an excuse of financial crunch to increase the property tax rate. Due to lack of administrative efficiency the Corporation every year is facing loss of revenue,” he said.