The Delhi government on Tuesday gave the approval to release Rs.374 crore to all three Municipal Corporations under the Municipal Reforms Fund (MRF). Officials say that the move is to help the civic bodies tide over the financial crisis.
Rs.374 crore to be released
As announced by the Chief Minister himself during ‘Talk to AK session on Sunday, the Aam Aadmi ‘Party is planning to contest the municipal elections in Delhi slated next year. Even the decision to allocate funds, for which the government had to go out of the way, was taken in the cabinet meeting headed by the CM.
The financial crisis in the Municipal Corporations has been brewing since 2015, after their sanitation staff went on a strike and the protestors dumped garbage on the streets. The Delhi government had then released funds so that salaries could be disbursed. As per the official statement from the Delhi Government, Rs. 145.3 crore have been allocated for the North Delhi Municipal Corporation and Rs. 118 crore and Rs. 110.70 crore for South Corporation and East Delhi Municipal Corporation, respectively. Delhi government officials said that the formula regarding allocation was worked out by the Urban Development Department.
“The formula was accepted as of the three corporations, two- North and East Corporations- do not qualify to receive MRF share, based on the recommendations of the Finance Commission.
“Despite NDMC and EDMC not qualifying to get any allocation under the MRF, the Cabinet has approved funds for both the civic bodies in order to help their employees in getting salaries on time,” the official statement read.
As per the rules, the MRF can only be released by the State government if civic bodies introduced reforms in their functioning and show profits.
