To fight cash crunch, east Delhi corporation cuts perks

NEW DELHI: The East Delhi Municipal Corporation (

EDMC

) has issued a circular to cut down its expenses in a bid to overcome the ongoing financial crisis. The circular states that till the time government implements the 4th and 5th Delhi Finance Commission recommendations, the civic body have decided to take harsh measures.


A circular dated November 10, stated, “EDMC is currently undergoing severe

shortage

of

funds

that makes it difficult to discharge the obligatory functions properly. Till the time the government implements the DFC recommendations (4th/5th), EDMC will be struggling to function due to the precarious financial condition. In the absence of proper support from the government, EDMC is forced to curtail its expenditure.”

The measures include imposing a ban on leave travel allowance for employees, medical reimbursements restricted only for treatment taken from hospitals on the panel, communication reimbursement stopped for a year, allowance as per 7th central pay commission to be withdrawn, all kinds of paid study leave and study tours banned for a year, etc.

The circular also states that no new posts should be created and no recruitment should be done during this period. “Pay scale upgradation of head clerk, superintendents, steno, translators and others is rolled back immediately. Officials may tour only in unavoidable cases with lowest fare of the day. If travelled by air, lowest fare available on any airline should be considered. Comparative sheet of fare should be part of the claim/bill,” the circular states.

The east civic body has been going through

acute

financial crisis since trifurcation due to uneven distribution of assets and its geographical location. However, in the past few years due to delay in the implementation of fourth Delhi finance commission, the civic body has failed to pay salary to its employees on time. This has resulted in numerous strikes by the employees. EDMC has been frequently requesting the government to implement the finance commission report, which aims to give a boost to the civic body by at least 1,000 crore per year.

The financial department claims that the only way to resolve the ongoing crisis is by implementing the fourth finance commission report or increase share of EDMC and north corporation from the 3rd DFC allocation. Presently, the civic bodies are allocated fund by the Delhi government on recommendations of 3rd DFC. Accordingly, EDMC gets only 18% while north gets 40% and SDMC gets 42% from the 10.5% share of government receipts.

The fourth DFC recommends 12.5% of Delhi’s share of taxes, which aims to give boost to the civic bodies by at least Rs 1,000 crore. It also suggests that EDMC and the north body should get higher share than SDMC.

Stay updated with the latest news on Times of India. Don't miss the yearly horoscope 2025 and Chinese horoscope 2025 for Rat, Ox, Tiger, Rabbit, Dragon, Snake, Horse, Goat, Monkey, Rooster, Dog, and Pig zodiac signs. Spread love this holiday season with these New Year wishes and messages.