When the Municipal Corporation of Delhi was split into three separate bodies in 2012, officials knew that things would be tough for two of the new corporations. The East Delhi Municipal Corporation had the least revenue as it did not have any lucrative A and B category colonies, which pay a higher rate of property tax. The North Delhi Municipal Corporation got saddled with six hospitals, which provide free-of-cost medical care.
In comparison, the South Delhi Municipal Corporation had premium colonies that brought in higher property tax. Revenue from advertising in the posh areas was also more compared to North and East Delhi.
While presenting the Delhi Government budget (2012-2013), then Chief Minister Sheila Dikshit had said, “The newly constituted municipal bodies have inherited the poor financial position of the MCD.” She had proposed a total of Rs. 4,231 crore in funds for the corporations that financial year.
But, the BJP-ruled municipalities have claimed that the Congress government didn’t give them their dues, and then the Aam Aadmi Party Government stopped releasing funds altogether. “There was an imbalance since trifurcation. In the unified MCD, East Delhi accounted for 14 per cent of the income, but 24 per cent of the expenditure,” said EDMC Mayor Harsh Deep Malhotra.
He said that the income was less as 70 per cent of households in East Delhi were in unauthorised colonies. The financial crisis has got so bad that East Delhi sanitation workers have been on strike since June 2. While salaries and pensions in the East and North Delhi corporations haven’t been paid for two months, social welfare pensions haven’t been disbursed for over a year.
North Delhi Mayor Ravinder Gupta said, “The Congress split up the MCD to weaken the civic body. They gave us birth with a loan. And the Arvind Kejriwal Government made it worse by stopping all our funds.” The Opposition Congress, however, said the Centre was equally responsible. “What is about the municipal funds cut by the BJP at the Centre,” asked North Corporation Leader of Opposition Mukesh Goel.
