AAP govt approves Rs 374 crore for three MCDs

The Delhi government today approved a proposal to release Rs 374 crore to all three MCDs, controlled by the BJP, under Municipal Reforms Fund, a move aimed at helping the civic bodies overcome "difficult financial conditions".
The decision was taken at a Cabinet meeting chaired by Chief Minister Arvind Kejriwal at Delhi Secretariat.
A senior government official said the Cabinet approved Rs 145.30 crore for North Delhi Municipal Corporation, Rs 118 crore for South Delhi Municipal Corporation, and Rs 110.70 crore for East Delhi Municipal Corporation.
The Cabinet accepted the formula worked out by the Urban Development Department (UDD) for allocation of the MRF share among the three corporations.

The UDD formula was accepted as two of the MCDs - North and East - don't qualify to get MRF share strictly on the basis of the recommendations of the Finance Commission.
"Despite NDMC and EDMC not qualifying to get any allocation under the MRF, the Cabinet has approved funds for both the civic bodies in order to help their employees in tiding over difficult financial conditions," the official further said.

As per the rules, the MRF can only be released by the city government if civic bodies introduced reforms in their functioning and show profits.
"The corporations have failed to meet the requirement of surplus budget, which is essential for seeking this fund, despite that we have decided to give funds under MRF to MCD for the welfare of their employees," he said.

The Aam Aadmi Party is gearing up for the MCD polls scheduled for next year. In the by-polls to 13 seats earlier this year, the AAP had made debut winning five.