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MCD up in arms over reduction in revenues

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Posted: Feb 01, 2008 at 2341 hrs IST

New Delhi, January 31 The MCD Standing Committee today criticised the Delhi government for reducing its annual share of the revenues from 5.5 per cent to 4 per cent.

The Standing Committee has passed a resolution asking the Delhi government to take back its decision and take the suggestions of the MCD on the Finance Commission report, failing which the MCD will take steps like agitation, moving the court and going on hunger strike.

The MCD also complained that while 2001 census population figures were already available, the Finance Commission had deliberately taken the 1991 population data to reduce MCD funds. While NDMC area population had come down from 3 lakh to 2.95 lakh from 1991 to 2001, the MCD area population had gone up from 90 lakh to 133 lakh. Despite this, the MCD's share of revenue has been brought down, Standing Committee Chairman Vijender Gupta said.

MCD Commissioner A K Nigam confirmed that if the 1991 data is taken as the basis, the MCD's loss would be Rs 138.73 crore in the first year itself, if the population difference in MCD areas between 1991 and 2001 is taken into account, the loss would be much more.

“While the Finance Commission is supposed to be an independent body, the third Finance Commission had members who were serving bureaucrats in the Delhi government,” Gupta claimed. The report of the third Delhi Finance Commission, lying with the government for the last two years, was recently approved.

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