Kejriwal seeks Rs4,087 cr special Central grant

Kejriwal seeks Rs4,087 cr special Central grant
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Delhi Chief Minister Arvind Kejriwal has sought special grant of Rs4,087 crore from Centre for local bodies in the national Capital at par with other States.

Also, the CM expressed annoyance over the manner local bodies of Delhi and Union territories have been omitted from the list by the Central Finance Commission on technical grounds. 

In a letter to Prime Minister Narendra Modi, the CM has requested for special grant of Rs4087 crore to local bodies at par with other States for the period from 2015-2020.

 Kejriwal also requested the PM that while drafting the terms of reference for the future Central Finance Commission it should be ensured that the NCT of Delhi and Union Territories are also included in the “scope” of their grant in aid recommendations.

Kejriwal’s letter came in the wake of 14th Central Finance Commission allocation of grant in aid of Rs2,87,436 crore for the local bodies for award period of 2015-2020. “However, Delhi and Union Territories have been omitted from this grant in aid altogether on the argument that only States are covered under the awards scheme of Central Finance Commission.

This argument is completely unfair as the municipalities in Delhi perform the same functions as the municipalities in other States. Further the taxation and other fiscal powers of the Delhi Government are also similar to other States,” the CM said.

“The grant in aid of Rs2,87,436 crore for the local bodies for the award period 2015-20 allocated by the 14th Central Finance Commission works out to Rs488 per capita per annum. Delhi with population of 1.675 crore as per 2011 census, should be provided Rs4087 crore in the 14th Central Finance Commission grant in aid for the local bodies computed at the rate of Rs 488 per capita per annum,” the letter read.

The terms of reference for the Central Finance Commission as per Article 280(3) (C) of the Constitution, is to make recommendations about measures needed to augment the Consolidated Fund of a State to supplement resources of its municipalities.

But, the terms of reference for the Central Finance Commissions (11th to 14th) that predate the 69th Amendment to Constitution which created the legislative Assembly for NCT of Delhi and placed Delhi in a class by itself, with an elected Government and fiscal powers and arrangements similar to others States in the country, the CM pointed out in the letter.

The argument that only States are covered under award schemes of Central Finance Commission is “completely unfair” as the municipalities in Delhi perform the same functions as the municipalities in other States. Further, the taxation and other fiscal powers of the Government of NCT of Delhi are also similar to other states, he said.

“The situation of Municipal Corporations of Delhi is not different and merits the same consideration from the Central Government,” he added.

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