The Hindu : No new tax proposed in next MCD budget

Online edition of India's National Newspaper
Friday, Dec 06, 2002

Other States

Other States - New Delhi

No new tax proposed in next MCD budget

By Our Staff Reporter

NEW DELHI DEC. 5. Addressing the core issue of reforming civic administration and increasing its revenue collection through public-private participation, the Municipal Commissioner, Rakesh Mehta, has proposed "no new tax'' in the civic body's annual budget for the next financial year.

Issuing of municipal bonds for developing infrastructures in the Delhi, an unprecedented thrust on e-governance, setting up of a benevolent fund for widows of its deceased employees and the rationalisation of procedure of denotification of slum area, are some of the features of the budget proposals presented yesterday.

However, the Councillor's Area Development Fund has been slashed from Rs. 65 crores to Rs. 30 crores.

With the budget speech before the MCD Standing Committee on Revised Budget Estimates for the year 2002-2003 and Budget Estimates for 2003-2004, Mr. Mehta has set the three-month-long process of the annual budget rolling.

As per the Delhi Municipal Corporation Act, it has to be finalised by February 15. The proposal would now be discussed in the Standing Committee.

Presenting the Rs. 2,170.50 crore estimated budget for 2003- 2004 and 2027.27 crore revised budget estimates for 2002-2003, he said: "No new taxes and fees were proposed in this year's budget proposal.''

On the proposals for mobilisation of additional funds, Mr. Mehta said next year the MCD would issue "Municipal Bonds'' with the approval of the Union Government for developing infrastructures like flyovers, car parkings and municipal markets.

The civic body has applied for a Rs. 13.5 crore loan to HUDCO for carrying out unfinished works of various office buildings.

Privatisation of toll tax and partially that of sanitation in six zones has already been effected.

The Non-Plan income of the civic body which was Rs. 1,510.66 crores in 2001-2002 is likely to increase to Rs. 2,027.27 crores in 2002-2003. "Several important measures have been initiated by the MCD to improve civic services,'' he said. Among these are construction of a civic centre at an estimated cost of Rs. 500 crores, introduction of people-friendly Unit Area Method for Calculation of Property Tax from next year, launching of dynamic website and setting up of Citizen Service Centres across the Capital, ensuring pucca building to all its schools by July 2003, medical facilities to pensioners, devolution of powers at the zonal level and ward-wise allocation of Plan Funds and introduction of double entry system for bringing transparency in the accounting system of the civic body.

Mr. Mehta said the civic body has tied up with reputed international computer companies like IBM, Compaq for using the recycled-computers for computer education in municipal primary schools.

In his maiden budget presentation, Mr. Mehta proposed that the historic Town Hall be converted into a museum after the new Civic Centre comes up at the Minto Road.

The Benevolent Fund for the widows of deceased employees was aimed at making them self- reliant by giving them vocational training to take up earning activities like stitching uniforms and chalk making, he said.

Mr. Mehta proposed to constitute a society for maintenance and upgradation of hospital which would have at its disposal the fund collected from the patient's registration fee.

A similar society has been proposed for the maintenance of staff quarters. Partnership with the non-governmental organisations and resident welfare associations has been proposed for maintenance of gardens and controlling the menace of stray cattle. "Society for animal birth control has been set up,'' he said.

Among the other fresh proposals are setting up of separate veterinary department, a heritage cell, development of modern parking sites and reserved places for advertisements.

Property tax continues to be the main source of income for the MCD. As against the income of Rs. 766.46 crores in 2001-2002 in property tax, it is estimated to be 1,277 crores this year and Rs. 1,349 the next financial year.

As for expenditure, education, conservancy and medical relief continue to be at the top of the priority of the MCD.

Printer friendly page
Send this article to Friends by E-Mail

Other States

Stories in this Section

No new tax proposed in next MCD budget

Complaint boxes to be put up at colleges

Sahmat to showcase 10 years of resistance

Access to airport made easier

Railways' squad to check eve-teasing

Directive to AIDS Control Society

Tunnel boring machines at work for Metro