Cabinet okays Rs 374 crore for three MCDs

Tribune News Service 

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 tide over the "tough financial conditions". 

The decision to release the fund, as a one-time exemption for the financial year 2015-16, was taken at a Cabinet meeting chaired by Chief Minister Arvind Kejriwal at Delhi Secretariat here.

The move assumes significance as the ruling Aam Aadmi Party is gearing up for the next municipal polls. 

A government official said the Cabinet approved Rs 145.30 crore for North MCD, Rs 110.70 crore for East MCD and Rs 118 crore for South MCD.

The Cabinet accepted the formula worked out by the Urban Development Department for allocation of Municipal Reform Fund (MRF) share to the three corporations as two of the three corporations- North and East- do not qualify to get any allocation of the MRF share going strictly on the basis of the recommendations of the Finance Commission. 

"The allocation share was decided by giving 50 per cent weight to population, 25 per cent to area and the remaining 25 per cent to population density for each of the three corporations," read an official statement.

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 tide over difficult financial conditions," the official further said.

Going by the rules, the Municipal Reforms Fund  can only be released by the city government if civic bodies introduced reforms in their functioning and show profits.