With elections to the Municipal Corporation of Delhi (MCD) now over, the focus has shifted back to the civic body’s weak finances. The MCD’s backlog in payment of salaries to employees has risen to ₹935.18 crore as of December 12, from ₹672 crore in November, as per documents accessed by Today News 24.
While this is still below the backlog of ₹1,126 crore in September, officials said the MCD’s finances are running low and external revenue sources have dried up.
“Unless the backlog is cleared, there will be constant difficulties, even for the new councillors, in starting new development works,” an MCD official said, adding that the merger of the erstwhile three bodies did not change its poor financial state. Before the merger of the three erstwhile municipal corporations — North, South and East — strikes by employees over unpaid dues were a recurring scenario.
Long pending
The BJP, which was previously in power at the MCD, had alleged that the AAP-led Delhi government had cut down funds for the civic body. “Even today, we would like to repeat that the AAP government should immediately release the pending funds, only then the civic body’s financial situation can be saved,” said Delhi BJP spokesperson Praveen Shankar Kapoor.
Responding to the BJP’s allegations, AAP’s MCD in-charge Durgesh Pathak said this is the result of 15 years of BJP rule in the MCD. “Now that the people have given us a chance, we will increase the MCD’s income. Also, salaries to MCD employees will be paid on time every month,” he said, adding that the AAP government has given over ₹1 lakh crore to the MCD so far. In the seven months since the unified MCD was constituted, the backlog in payment of salaries has largely fluctuated between ₹600 crore and ₹1,200 crore. Each month, the MCD requires ₹774.83 crore for salaries.
At present, salaries for November are yet to be paid, while previous dues — to employees under the erstwhile North and East corporations — are pending. “February and March usually see a trend where there is an increase in our internal revenue. But this won’t be enough to clear the backlog, and other pending dues. A bailout package will be required,” said another official.