Deputy Chief Minister Manish Sisodia Wednesday tabled an explanatory memorandum on the action taken on the recommendations of the Fourth Delhi Finance Commission and its report. The report was the bone of contention between the AAP government and the BJP, which controls the Municipal Corporations of Delhi.
Leader of Opposition Vijender Gupta thanked Sisodia for doing it. “I just wanted to thank the deputy chief minister because we lived to see this day. Better late than never,” said Gupta.
The commission was constituted on October 14, 2009, and it submitted its report in March 2013. It had made recommendations to be implemented from 2010 to 2015. It was, however, delayed by three years. The terms of reference of the commission included measures to improve the financial position of municipalities.
Union urban development ministry:
* Not to deal with matters relating to constitution and powers of the municipalities and other local authorities in Delhi.
Municipal Corporations to:
* Widen tax base as less than 25 per cent of stock of buildings and vacant land pay property tax on voluntary basis.
Delhi government to:
* Keep 12.5 per cent of taxes, fees and duties collected by government in divisible pool 2012-2013 onwards
* Change existing formula of sharing funds among municipalities, that is population and area in 70:30 ratio as is has adversely affected the financial health of at least two of the four municipal bodies.