Increase Delhi’s share in taxes in Budget: Sisodia to Centre

| | NEW DELHI
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Increase Delhi’s share in taxes in Budget: Sisodia to Centre

Tuesday, 19 January 2021 | Staff Reporter | NEW DELHI

The Delhi Deputy Chief Minister Manish Sisodia on Monday urged the Union Finance Minister Nirmala Sitaram to treat Delhi at par with the Union Territory of Jammu & Kashmir in regards to providing share from Central Taxes and Central Assistance to Union Territories, and the Disaster Response Fund.

During the pre-budget meeting with the finance ministers of all States, and the Union Territories, Sisodia also pointed out that the share in capital taxes for Delhi has remained stagnant at Rs 325 crores for two decades now, since 2001-02.

“Being the capital of the country, and one the fastest growing metropolises, the Delhi Govt. needs to maintain an infrastructure that meets the world standard. We want to improve the supply of civic amenities to meet the demands of the burgeoning population that expects a quality standard of living to lead a wholesome life in the capital. Moreover, the Delhi Govt. needs funds to make huge investments in crucial departments like education, health, social, food securities, transports, roads and hospitals among others,” said Manish Sisodia.

Sisodia also appealed to the Union Finance Minister that Delhi deserves its legitimate share in central taxes to finance the developmental needs of the city, and accordingly requires enhanced allocation of at least Rs 8,150 crore in RE 2020-21, and Rs 8,555 crore in BE 2021-22.

Sisodia also said that the three municipal corporations of Delhi are under extreme financial crunch, and merit the same consideration from the Central Government in receiving proper financial assistance as do other states.

“Delhi had to also devolve funds to the local bodies at 12.5 per cent of its net tax proceeds on the basis of recommendations of the Delhi

Finance Commission. The Fourteenth Finance Commission allocated Grant-in-Aid of Rs 2,87,436 crore for the local bodies for the award period 2015-20 which works out to be Rs 488 per capita per annum,” he said.

Sisodia said that Delhi with a population of approx. 193.86 lakh people should at least be provided Rs 1,150 crore, along with an appropriate annual enhancement grant to the Delhi Govt. for its local bodies. Considering the dire financial situation of the MCDs, Manish Sisodia also requested a one time grant of Rs 12,000 crore which is the legitimate

share of the Municipal Corporations of Delhi over the last 10 years.

Sisodia also drew the attention of the Union Finance Minister to receiving financial assistance from the Central Govt. In 2000-01, Delhi received Rs 370 crore as central assistance but has only been provided with Rs 626 crore in 2020-21.

Sisodia urged the Centre to treat Delhi at par with the rest of the country in providing Disaster Response Fund. “The Central Government released Rs 11,092 crore to all the state governments towards Disaster Response Fund in April, 2020 but Delhi did not receive any such support,” said Manish Sisodia

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