While the recommendations of Fourth Delhi Finance Commission are yet to promulgated, Delhi Cabinet chaired by Chief Minister Arvind Kejriwal on Tuesday approved a proposal for setting up Fifth Delhi Finance Commission. According to sources, former Urban Development Secretary Sudhir Krishna is likely to be its chairman.
The Commission will consist of a Chairperson and three members, including a Member Secretary. The Chairman and Members shall be appointed by the lieutenant-Governor of Delhi on the recommendation of the Council of Ministers of Delhi. The Commission has been initially constituted for a period of one year. The appointment of the Chairperson and Members shall be notified separately. The terms and conditions of the Commission shall also be notified separately. The recommendations of the Commission are proposed to be effective from April 1, 2016.
Sources said the Delhi Government is bound to set up Fifth Delhi Finance Commission by April as it is a statutory body.
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.
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 implementation 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.