As losses double, north body proposes hike in property tax
NORTH MCD BUDGET Deficit to be ₹1,300cr, up from ₹550cr in current fiscal
NEW DELHI: The North Delhi Municipal Corporation has proposed to increase the property tax in its budget estimates for the next fiscal year to cope with the losses that have more than doubled over the past fiscal.
In 2019-20, the projected deficit is proposed to be ₹1,300 crore, which has spiked sharply since this financial year when losses were ₹550 crore while in 2017-18, the losses were ₹300 crore.
In the budget proposals for 2018-19, there is a proposal to increase 1% tax on properties falling under category A to E; and 2% on properties falling under category F to H.
Area categories are based on the development in each area, and the civic services provided to it, with Category A being the highest and H, the lowest.
There is also plan to increase property tax on special non-residential properties such as hotels and eateries by 5%.
North corporation commissioner Madhup Vyas also proposed to levy two new taxes — betterment and professional.
“Increase in property tax and the two new taxes will help us generate ₹100 crore more,” said Vyas.
The proposals will have to be ratified by the house of elected councillors and the standing committee before implementation.
“The last time the unified MCD had approved increase in house tax on residential properties was in 2010-11. On properties falling under category A and B category, then the increase was 10 to 12%, in C, D and E category it was 10 to 11% and G and H categories it was 6 to 7%,” said a senior SDMC official privy to the matter.
The budget also emphasises upon revenue generating projects, which will taken up next fiscal such as installing 25 charging points for e-vehicles at old or unutilised MCD’S building, advertisement on DTC buses, Railways properties, smart poles and installing 800 new mobile towers.
Skill development workshops for sanitation workers and their families
Rebate of 50% on interest on education loans for children of Class IV workers
Medical insurance for sanitation workers
29 surface parking lots proposed
3 rail overbridge at Kirari, Ghevra and Narela Mandi for a cost of ₹287 crore
Corporation’s websites to be
WELFARE SCHEMES
To help the sanitation workers and their families, the North MCD has proposed to organise skill development workshops next year and allocated budget of ₹50 lakh for the purpose.
“In order to bring the children of sanitation workers into mainstream, the civic agency has also proposed to pay 50% of interest on the loan amount taken for the purpose of medical, engineering or other educational programmes last year by Class IV employees,” said Vyas. The civic agency also announced to cover Class IV employees under health insurance.
REVENUE GENERATION
The civic agency has been following up with the Delhi Transport Corporation and Northern Rail- way to share revenue from advertisements.
“The proposal to place advertisement over DTC buses has been finalised and the agency has also invited bids. We are having correspondence with them to share revenue on advertisement. Similarly rounds of meetings have taken place with railway officials and things will be finalised soon,” Vyas said.
The corporation has chalked out a plan to provide parking for 52,910 vehicles by 2021 by developing 42 surface parking to accommodate 8,495 vehicles, multilevel parkings at 13 Metro plots to accommodate 12,021 vehicles and 16 stack parking to accommodate 1,361 vehicles. At present, the civic agency has the facility to park 31,033 vehicles.
SANITATION
To ensure segregation of garbage and strict implementation of the Municipal Solid Waste Management Rules, 2016, the North MCD has started serving notices to bulk generate who have failed to segregate and dispose biodegradable waste. “We have issued notices to at least 300 bulk generators alarming then to start disposing biodegradable waste to avoid penal action. If they will not follow the norms then challans will be issued,” Vyas said.
OLD PROJECTS
Expressing hope to initiate work on projects that were mentioned in budget for previous years too, the civic agency shared details plans to realise these projects in phased manner. “Detail plan for redevelopment of staff quarters at Azadpur (25 acres) and Model Town (23 acres) staff quarters have been prepared. We have proposal to develop 2,600 residential flats of different categories at each of the place in 22 storey blocks. Likewise, a 13 storey commercial block at Azadpur has also been conceptualised,” the north corporation commissioner said.
The North Corporation has also demanded funds of ₹282.7 crore from the Union government for developing rail overbridges at Kirari, Ghevra and Narela Mandi.