The Delhi government has officially sanctioned the disbursement of Rs 687 crore as the third and final instalment of the Basic Tax Assignment (BTA) for the financial year 2025-26. This statutory transfer is designed to bolster the financial capabilities of local bodies, enabling them to deliver essential civic services effectively across the National Capital Region.
Major Allocation to Municipal Corporation of Delhi
In this latest allocation, the Municipal Corporation of Delhi (MCD) has secured the highest share, receiving a substantial Rs 673 crore. This funding is expected to play a pivotal role in strengthening urban infrastructure, sanitation services, and other critical public amenities throughout the city.
Distribution Among Other Local Bodies
Beyond the MCD, the New Delhi Municipal Council (NDMC) has been allocated Rs 8.36 crore, while the Delhi Cantonment Board (DCB) will receive Rs 5.73 crore. These allocations underscore the government's commitment to supporting all local bodies in their efforts to improve civic governance and service delivery.
Purpose and Monitoring of Funds
The released funds are earmarked for specific purposes, including waste management operations, sanitation services, clearance of pending dues, garbage lifting in contractor-less areas, and minor road repairs aimed at reducing dust pollution. Officials have emphasized that the utilisation of these funds will be subject to rigorous monitoring to ensure strict compliance with approved objectives and prevent any misuse.
Statements from Urban Development Minister
Urban Development Minister Ashish Sood highlighted the significance of this financial support, stating, "The release of the final BTA instalment would help strengthen civic amenities, sanitation services, infrastructure, and other essential public services across the city." He further added that the government aims to provide timely and accountable financial assistance to urban local bodies to enhance service delivery and improve the quality of life for residents.
Additional Financial Assistance Initiatives
In addition to the BTA, the Delhi government has provided a one-time financial assistance of Rs 500 crore to the MCD specifically to support solid waste management and sanitation services. Moreover, the government has committed to continuing an annual assistance of Rs 300 crore to the civic body in the coming years, ensuring sustained support for ongoing and future projects.
Background on Basic Tax Assignment
The Basic Tax Assignment is a statutory transfer mechanism where the Delhi government devolves funds to local bodies as a share of net tax proceeds. This system is crucial for enabling local bodies to meet their financial requirements and deliver core civic services efficiently. In its budget last year, the Delhi government had allocated a total of Rs 3,640 crore under the BTA framework, reflecting its ongoing dedication to urban development and governance.
This latest fund release is part of broader efforts to address urban challenges, enhance infrastructure, and ensure that civic services are delivered effectively to all residents of Delhi.
