With 2011-12 being the last financial year before the next municipal elections, the Municipal Corporation of Delhi is finding it difficult to do the tightrope between “not burdening the common man” with increased property taxes and making up for the huge deficit.
So, while the increase in property tax rates, as proposed by the municipal commissioner before the all-powerful standing committee has been rejected, the MCD is now understood to be mulling a raise in the toll tax rates to augment its finances.
According to sources, the proposal to increase toll tax rates may be added to the current set of proposals under discussion by the deliberative wing.
“While increase in property tax rates affects the common man directly and has political ramifications, the increase in toll tax rates is not going to have a direct impact on the ordinary citizens,” said an MCD official.
The officials added that budget deficit, which is more than `2,600 crores, has to be compensated one way or the other.
With the proposal of hike in property tax rates being shot down immediately by the ruling BJP, the corporation has to try and work out other ways to shore up its financial resources, said the officials.