Can’t release more funds, says Centre
SANITATION CRISIS Union govt says its current provisions and overall fiscal resources prevent it from giving more money to Delhi
NEWDELHI: The Centre on Tuesday reiterated that it was unable to release additional funds to the Delhi government to meet the needs of the municipalities in view of the “current statutory provisions and overall fiscal resources”, said officials familiar with the matter.
The Centre will explain its position to the Supreme Court as well.
The Centre stated its position a day after the Supreme Court termed as “unfortunate and tragic” its stand that it was not prepared to “make any payment at all” to resolve the crisis arising out of the nearly month-long strike by East Delhi Municipal Corporation sanitation workers, who are demanding regular payment of salaries. The strike was called off on Tuesday.
The Centre has taken a legal position that the Delhi government was provisioned ₹790 crore as central assistance and ₹325 crore of it has already been released that and the rest will be released in due course.
“The provision is made for Delhi in the budget every year and if a correction has to take place, it can happen only after a due statutory process involving the finance ministry. The central finance commission’s recommendations deal with the states and Delhi is a Union Territory. So it cannot be covered under the commission’s recommendations that deal with grants to local bodies,” said a home ministry official on the condition of anonymity.
The Centre and the Delhi government are at loggerheads over the release of funds to the municipal bodies in Delhi. The funds in Delhi are released on the recommendations of the Delhi Finance Commission (DFC). The DFC is set up every five years to review the financial position of the corporations and decide on the proportion of grants from the Delhi government to local bodies.
Delhi has five local municipal bodies — East Delhi Municipal Corporation Delhi (EDMC), North DMC, South DMC, New Delhi Municipal Council and the Delhi Cantonment Board. At present, the municipal bodies get grants on the basis of recommendations of the third DFC.
“The fourth DFC was constituted in October 2009 and it gave its report in 2013. The fifth DFC was constituted in 2016 and it gave its report last year. The municipal bodies are still being paid on the basis of the third DFC report. If the fourth DFC recommendations, due from 2013, are implemented, the municipal bodies will get ₹1,290 crore more and major chunk will go to EDMC, which will get ₹1,140 crore. The EDMC is the most precarious position financially. The report of fifth DFC is also ready but it is yet to made public and the Delhi government is not releasing funds to the local bodies even on the basis of fourth DFC,” said a home ministry official. But the Delhi government says the Centre too has obligations pertaining to DFC recommendations.
The Centre will file its affidavit before two different benches of the top court – a regular bench hearing the Delhi government’s appeal on the Delhi high court order and the second bench hearing the garbage crisis issue.
The Delhi government alleged it was the Union government that rejected the fourth DFC’S recommendations . It said the local bodies and the Centre were “selectively burdening” the Delhi government over funds.
“Despite requests, the Union government has refused to implement the recommendations of the fourth DFC. Interestingly, the MCDS that have themselves not implemented the fourth DFC recommendations have been only insisting on the selective burdening of the Delhi government without even asking the central government to implement the same,” the government said in a statement.