Expressing concern over financial health of the corporation, South Delhi Municipal Corporation (SDMC) Mayor Narendra Kumar Chawla has written a letter to Delhi Chief Minister Arvind Kejriwal, stating that implementation of recommendations of 5th Delhi Finance Commission (DFC) will result in reduction of Rs 1300 crore per year to the civic body.
In the letter, Chawla stated that the provision for allocation of funds under non -plan and plan schemes has been clubbed together by the 5th DFC which used to be separate earlier and due to which the allocation of the funds to SDMC is bound to be curtailed to meager 39.19 per cent of three per cent of net tax collection of the Delhi government.
The SDMC has already been facing scarcity of funds to discharge its obligations and in this case it will be difficult to implement the welfare and developmental schemes, it stated.
Chawla further stated that at present the share of funds to be allocated to SDMC under this scheme is not clear as 6.5 per cent of net tax collection shall be devolved for schemes under health, education and urban development sectors only after due consultations with the regarding departments and local bodies.
“As per the 3rd DFC’s recommendations on devolution of funds to urban local bodies, SDMC had been in receipt of 45.44 per cent share of tax assignment out of the funds apportioned to the local bodies, he said, adding that the civic body has since been deprived of this part of the funds also.