DFC tax proposal CM’s bargaining chip

NEW DELHI: With the BJP raising the demand for implementation of the fourth Delhi Finance Commission (DFC) to enhance funding for municipal corporations, the Kejriwal government has lobbed the ball into the Centre’s court and that of agencies like DDA and corporations. The state has sought to know their stand on recommendations for devolution of more powers to the capital and a greater share in central taxes.
The issue of tabling of the DFC report in Delhi assembly—which BJP has been demanding—is in the Delhi high court and the matter is scheduled to be heard on July 9 when the state is expected to spell out its stand. The first round of stakeholder consultations happened last week with the state authorities meeting representatives of the union home ministry, DDA and municipal corporations. The stakeholders have been asked to give their replies for arriving at a consolidated view. This is a tricky situation and it will not be easy for the MHA to take a stand on the DFC recommendations in view of the ongoing tussle between the Centre and state on most issues.
It is learnt that in a section on recommendations for the Centre, the report says Delhi should be treated like a state at par with other states for getting a share in central taxes. The AAP government has been crying hoarse on central taxes, Delhi gets a stepmotherly treatment from the Centre.
The DFC report also has recommendations on DDA and Delhi Police and their powers and talks of greater engagement of the state in their functioning. It is also learnt to have addressed the pending issues of building bylaws, stressing that the Centre may stay away from framing such bylaws for construction of buildings in Delhi.
The state government is sending out the message that if the Centre and its agencies want the state to implement the recommendations related to funding of corporations, then Delhi too must get what the DFC has recommended with regards to its share in central taxes and more powers linked to DDA, police and land laws.
Meanwhile, as the Delhi government prepares to file its reply in the high court, it is also exploring the option of constituting a new commission for a fresh assessment as the recommendation of the previous commission are already two years old.
Currently, the funding of municipal corporations, as far as their share in state taxes is concerned, is governed by recommendations of the third DFC. The fourth DFC was constituted in 2009 and was supposed to give its report in 2010. However, the report came only in 2013. It could not be tabled in the assembly as the capital went to polls in December that year and then there was a year of President’s Rule after 49 days of the AAP government.