Weeks after the unified Municipal Corporation of Delhi (MCD) was constituted, the drafting of a unified budget for the civic body has remained snail-paced, according to a senior official familiar with the development.
The official said the budget estimates of the three erstwhile civic bodies – North, South and East – continue to remain in place despite the merger and because of it many officials are still in the dark on the way forward.
As per the January 2022 budget estimates — for the financial year 2022-23 — of the three erstwhile corporations, the South civic body’s estimated expenditure stood slightly above ₹4,800, while the estimate for the East and North corporations stood slightly above ₹4,700 crore and ₹7,500 crore.
Pending salaries
“A unified budget is required for the civic body to operate because it is practically impossible to allocate funds based on three separate budgets. The civic body has no money to pay salaries. Whatever it has paid recently has been due to the funds received from the Delhi government,” said the senior official, adding that the MCD’s financial situation is growing worse as salaries for the months of April and May have not been paid.
Another senior civic official confirmed that the MCD is in the process of preparing a unified budget but added that there was no clarity on when it will be publicly released and put into effect.
“Until the new budget is in place, we will have to use the previously passed budgets because there is no other choice. Currently, we are making minimal allocations for essential works, and these allocations will be adjusted in the unified budget,” said the second official.
Both officials said the delay in payment of salaries will continue till the core issue of clearing financial liabilities is not attended to.
“The Centre seems to have lost interest in the financial state of the MCD after its unification was completed. Through the merger, a poor civic body has been created. The unification might have been a solution for other reasons, but it’s not helping the civic body financially,” said the second official.
