NEW DELHI: Delhi Finance Minister Manish Sisodia met Union Finance Minister Nirmala Sitharaman on Friday to seek the national capital’s share of central taxes for the betterment of the city.
“I have requested for funds for Municipal Corporations of Delhi in the same way as the Central government provides funds to corporations of other states. Looking at the present scenario, the MCD does not receive funds from the Central government. I have also urged the Union Finance Minister to share a part of the central taxes for Delhi to expedite the process of establishing more schools and hospitals,” Sisodia told the media after the meeting.
The three civic bodies, which are ruled by the BJP, have often complained about lack of funds in the past several years. Salaries of thousands of municipal staff were held up for months due to paucity of funds.
In a letter, Sisodia urged Sitharaman to consider providing Delhi a share in central taxes.
“Delhi has not been given any share in central taxes since 2001. 42 per cent of the central taxes are given to all other states based on the recommendations of the Finance Commission. Before 2001, Delhi used to receive its share in central taxes,” Sisodia noted.
Keeping in mind that the AAP government plans to make Delhi a world-class city and that the burgeoning population requires more investment in civic amenities, Sisodia said, the NCT government needs funds from the Centre. He also referred to the erstwhile Article 270 (3) of the Constitution which pertains to the share of taxes between the Centre and the Union Territories.
“But for the inadvertent omission of erstwhile Article 270 (3), the Govt of NCT of Delhi would be getting its legitimate share in central taxes of at least Rs 7,000 crore per annum with an appropriate annual enhancement like other states to finance the development needs.”
Sisodia, who is set to table the Delhi Budget after Holi, also requested Sitharaman to provide additional Terms of Reference to the Fifteenth Finance Commission for enabling the Commission to recommend legitimate share of Delhi in central taxes.
“The NCT of Delhi has the character of a state, and therefore is eligible to be treated at par with other states for receiving a share of central taxes.”
Chief Minister Arvind Kejriwal has made this demand several times in the past while pointing out at the ‘step motherly’ attitude of the Centre towards Delhi.
No change in share of central taxes
The Delhi government was given Rs 325 crore as share in central taxes in the 2020-21 Budget. The Centre allocated Rs 626 crore as central assistance against Rs 472 crore in the last year’s budget.