5th DFC-Delhi govt to devolve 12.5 pc of its total tax collection to municipal corporations: Jain

The AAP government has decided to accept most of the recommendations of the Fifth Delhi Finance Commission, providing 12.5 per cent of its total tax collection to municipal corporations in the city, Urban Development minister Satyendar Jain said Thursday.

Presenting the Delhi government's action taken report on the Fifth DFC in the Assembly, Jain said earlier this amount was 10.5 per cent as per the Third DFC recommendation.

However, the government refused to implement the report of the Fourth DFC, saying that in any case, it has released more funds to municipal corporations ranging from 14 per cent to 17 per cent.

The urban development minister also presented government's action taken report on the Fifth DFC in the House, which was adopted.

The minister told the House that there were a total of 171 recommendations made by the Fifth DFC, out of which 88 were accepted by the government, 20 related with devolution of funds were accepted with amendments, 13 were for local bodies to accept, 17 were referred to committees, and 29 were rejected.

According to the devolution formula, 12.5 per cent of tax collection that will be transferred to the local bodies will be divided into two parts.

The first part of six per cent will be further broken down into three per cent each. The East and North Delhi will receive 65 per cent and 35 per cent, respectively of it.

The other three per cent will be meant for all the local bodies, including the New Delhi Municipal Corporation and the Delhi Cantonment Board.

The remaining 6.5 per cent will be devolved to the local bodies through budgetary provisions of different departments, Jain said.

Presenting the action taken report of the Delhi government on the Fourth DFC, Jain said that the Centre denied to accept it. The Fourth DFC recommended the Delhi government's control over the local bodies, including the municipal corporations and the Delhi Development Authority, he said.

"It was said by the Fourth DFC that the Delhi government will accept recommendations to it only after the Centre accepted those for it, but they rejected it," he said.

Jain also said the Delhi government provided 17.6 per cent of its budget to the municipal corporations in 20112-13, 16.11 per cent in 2013-14, 15.34 per cent in 2014-15, and 14.40 per cent in 2015-16.