MCD reels from financial crisis

Senior civic officials said that the Municipal Corporation of Delhi's (MCD's) financial crisis has worsened, with its liabilities rising to ₹16,226.5 crore, from over ₹14,000 crore in February, as it grapples with an annual budget expenditure of ₹17,000 crore.

- Paras Singh

The civic body flagged the problems in a recent review meeting with Delhi chief minister Rekha Gupta, seeking assistance from the Delhi government, officials said.

These liabilities include the money it owes to employees in pension benefits, payments to contractors, loans, as well as the amount owed to the concessionaires managing the collection of waste in the national capital.

According to the MCD data, the corporation currently owes ₹3,605 crore in employee retirements benefits and arrears, ₹1213.8 crore to contractors, ₹51.9 crore for dumpsite remediation/biomining projects, ₹460 crore to concessionaires for collection and transportation of municipal waste, ₹7,541.11 crore to the Delhi government, taken as loan, and ₹3,353.37 crore “internal loan”, which refers to a form of borrowing from itself and its employees, such as from provident fund and escrow accounts, which, ideally, should not be used.