The ongoing financial crisis in the North and East Delhi municipalities has forced the government to give the corporations a breather from paying off loans.
Mr. Manish Sisodia said on Thursday: “We propose to give time to the corporations to set their houses in order by giving them a moratorium on loan repayment.” He announced that the government will not deduct the principal and interest amounts of the seven outstanding loans from annual grants given to the civic bodies. The BJP-led corporations had been protesting against this practice.
The budget for 2015-16 includes Rs.5,908 crore for the local bodies, which is 14.4 per cent of the total. Mr. Sisodia said the AAP government was “committed” to supporting the corporations.
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He said: “Already we have shown our intent by releasing funds to the municipal bodies in excess of what they otherwise used to receive from the government.”
According to him, the bodies had received Rs.1,131 crore as on June 30, as opposed to Rs.769 crore at the same time last year. The Minister also asked them to streamline their functioning and increase revenue.
However, BJP leaders of the corporations dismissed the announcements.
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