DFC recommendations reducing MCD share in revenues criticised

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New Delhi, Jan 31 (UNI) The Standing Committee of the Municipal Corporation today criticised the recommendations of the Third Finance Commission to reduce the share of the Municipal Corporation of Delhi in the net revenue collection from 5.5 per cent to 4 per cent.

A resolution passed by the committee at a meeting here demanded that the sharing should be on the basis of the 2001 census and not the 1991 census of Delhi.

It said that the 74th Amendment of the Indian Constitution provides for strengthening of the finance of Local Bodies and that any decision contrary to this i e to cut the earlier percentage of sharing to the MCD will be against the spirit of the 74th Amendment of the Constitution.

''Hence the Government of the National Capital Territory of Delhi (GNCTD) should ensure higher sharing of the assigned taxes etc to the MCD in consonance with the recommendations of the 2nd DFC for the period covered under the recommendations of the 3rd DFC,''the resolution said.

Later, addressing reporters, the chairman of the MCD Standing Committee Vijender Gupta said,''if implemented, these recommendations will throttle the very existence of the Municipal Corporation of Delhi. The civic body will fight tooth and nail against the gross injustice meted out to it in the report of the Commission.

''It is ironical that the recommendations are grossly in favour of the cash-rich and prosperous sister organisation i e New Delhi Municipal Council (NDMC).

Mr Gupta said the Delhi Finance Commission has reduced the share of the Municipal Corporation of Delhi from the net revenue collection from 5.5 to 4 per cent which has been accepted by the Delhi Government. He said that 1.5 per cent of the net proceeds of all taxes and duties imposed by the Government will be placed under the Municipal Reform Fund out of which an amount equivalent to 10 per cent of its share in tax assignment as a reward in recognition of its better fiscal management has been sanctioned to NDMC.

Mr Gupta alleged that the recommendation of the DFC gives arbitrary powers to the Delhi Government to allot or with-held the share of the MCD on the basis of so called better fiscal management, which itself is heavily balanced in favour of the NDMC.

''While the MCD is a public representative body from whom the public requires desired facilities at the least taxes, the NDMC is a Government Nominated body headed by a bureaucrat with no accountability to the public,''Mr Gupta said.

UNI AR AK RN2007

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