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CM and Dy CM review the financial reality of three MCDs , 15th January 2016

Home/ CM and Dy CM Review The Financial Reality of Three MCDs , 15th January 2016

DIRECTORATE OF INFORMATION AND PUBLICITY
GOVERNMENT OF DELHI
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New Delhi: 15/01/2016

CM & Deputy CM review the financial reality of three MCDs

Chief Minister Mr Arvind Kejriwal and Deputy Chief Minister Mr Manish Sisodia on Friday reviewed the status of financial condition of the three Municipal Corporations of Delhi.

PLEASE FIND ATTACHED THE COMPLETE MINUTES OF THE MEETING ALONG WITH THE LIST OF OFFICIALS WHO ATTENDED IT, ALONG WITH THIS PRESS RELEASE.

In the meeting attended by senior officials of the Delhi government and the commissioners of the three Municipal Corporations, the Chief Minister enquired whether any amount to be paid to the corporations was outstanding from the government side.

It was informed by the three commissioners of the corporations that they had received the entire budgeted amount for the current financial year under the non-planned head from the Delhi government, which is mainly used for payment of salaries of the MCD employees.

Departments of Education, Health, Revenue and Transport informed the Chief Minister that all specific amounts which their respective departments were required to pay to the three corporations had been paid and final instalments under the planned heads of the budget would be cleared within a week.

It was informed in the meeting that the Municipal Reform Fund can only be released in accordance with law and the corporations have failed to meet the requirement of surplus budget, which is essential for seeking this fund, but the corporations are showing a deficit budget.

The Chief Minister asked the three commissioners whether the advertisement which appeared in some newspapers purportedly representing the MCD was an official advertisement and who paid for it.

It was informed that the said advertisement may have been released from the mayor’s office and details of billing had not been received so far.

Delhi government will review the entire issue again next week.

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FINANCE DEPARTMENT
GOVERNMENT OF NCT OF DELH
DELHI SECRETARIAT, NEW DELHI-110002.

 

Minutes of the meeting taken by the Hon’ble Chief Minister on 15.01.2016 at 5.30 p.m. to review the status of funds released to Municipal Corporations.

The Hon’ble Chief Minister has reviewed the status of funds released to municipal corporations under Plan and Non-Plan to date. The meeting was attended by the Hon’ble Dy. Chief Minister, Pr. Secretary (Finance), Pr. Secretary (Transport), Divisional Commissioner, Secretary (H&FW), Director (Education) and all the three Municipal Commissioners.
The position of funds released as against Revised Estimates proposed by Government of Delhi are as under :-

Non-Plan
 

  1. Entire amount of Rs.892.92 crores earmarked under proposed Revised Estimate for North Delhi Municipal Corporation under Non-Plan has been released by the Government. In case of East Delhi Municipal Corporation, entire amount of Rs.465.53 crores has been released by the Government. In case of South Delhi Municipal Corporation, an amount of Rs.668 crores i.e. 80%, out of Rs.830.41 crores has been released. The remaining amount will be released by Monday, 18th January, 2016. Thus, entire funds under Non-Plan earmarked under proposed Revised Estimate has been / will be released to all three municipal corporations.
  2. There is a provision of Rs.374 crores in the proposed Revised Estimate as Municipal Reform Fund for all three municipal corporations. The release of this fund is linked with the financial performance of local bodies and Government gives it as an incentive to them due to improvement in their financial position. All corporations except SDMC are in deficit and are not prima facie eligible to get the incentive. Commissioners pointed out that they have not received any funds under MRF for the last two years. The Commissioners requested that Corporations be given MRF on basis of improvements made, as current conditions in MRF is very stringent. The Commissioner, North Delhi Municipal Commission also mentioned that the recommendations of Fourth Finance Commission may also be implemented by the Government.

(ii) Plan

  1. In case of Education Sector under Plan, about 75% of budgeted amount has already been released to North Delhi Municipal Corporation and East Delhi Municipal Corporation and in case of South Delhi Municipal Corporation, about 53% of the budgeted amount has been released up to December 2015. The Hon’ble Chief Minister suggested that the remaining fund under Education and Health Sector may be released to all three municipal corporations. It was also pointed out in the meeting that about Rs.295 crores are available as an unspent balance of previous year under Education and Health Sector with all three corporations.
  2. In case of Urban Development Sector, about 59% of the budgeted amount has been released to all three corporations and the remaining funds will be released in January 2016. However, in case of Transport Sector, about 25% funds have been released. The short release in this sector is due to the fact that the corporations have not submitted their proposals for release of funds. The position of requirement of Plan funds will be reviewed and thereafter remaining amount will be released on the basis of Revised Estimate.
  3. In case of share of local bodies in the collection of Stamps and Registration Fees, all the claims raised by the corporations up to the month of November 2015 have already been paid to them. The remaining amount will be released immediately after getting the claims from the local bodies by the Revenue Department.
  4. In case of payment of parking fees to local bodies, the payment has been made to local bodies up to the month of November 2015. The next tranche will be released in the month of February 2016. The payments are made after every two months.

The meeting ended with a vote of thanks to the Chair.
List of attendees

Shri S.N. Sahai, Principal Secretary (Finance)

Shri Parimal Rai, Principal Secretary (Transport)

Shri Amar Nath, Secretary (H&FW)

Shri P.K. Gupta, Commissioner, North DMC

Shri P.K. Goel, Commissioner, South DMC

Shri Mohanjit Singh, Commissioner, East DMC

Shri A. Anbarasu, Divisional Commissioner

Ms. Padmini Singhla, Director (Education)

Shri S.S. Gill, Special Secretary (UD)

Shri S.P. Singh, Special Secretary (Finance)

Dr. B.K. Sharma, Director (Planning)
 

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