The Pioneer 13.12.2010
Rs 2,867cr debt-ridden MCD gasps for fundsStaff Reporter | New Delhi
The primary civic agency of the national Capital is under a debt burden of Rs 2,867 crore and it appears to be struggling to find ways to increase the revenue.
The main source of income for the Municipal Corporation of Delhi (MCD) is the tax collection from property owners in the city, other than minor sources like advertisement, toll tax, fee from car parking and from mobile phone towers.
Noting that there was dire need for increasing revenue, Municipal Commissioner KS Mehra had last week proposed an across-the-board hike of five per cent in the property tax rates in the MCD’s 2011-2012 Budget. The proposal, however, was outrightly rejected by the ruling BJP in MCD which insisted that “even a debate will not be held on it”. The Opposition Congress too has said it will oppose any attempt to “further burden the people of Delhi.”
Municipal officials admit that the civic body is cash-strapped and is finding it tough to make payments to project contractors on time. The salaries of employees were also taking a big chunk since the Sixth Pay Panel came into force. Leaders of the ruling BJP feel that instead of increasing tax, the MCD should focus on widening the tax base.
“Some 21 lakh properties in the city is outside the ambit of tax. Only nine lakh are paying tax to us. We should try to bring more properties under the tax net,” Chairman of MCD Standing Committee Yogender Chandolia said. “There are 4,816 properties which have already been identified and are liable to pay Rs 5 lakh in tax per year. We can get Rs 712 crore if these properties are targeted,” said Chandolia.
