NEW DELHI: In a special meeting held on Wednesday, the Municipal Corporation of Delhi (MCD) passed a key resolution to regularise 12,000 contractual and daily wage employees by approving an ₹800 crore fund. This decision came as part of finalising the Budget for the fiscal year 2025-26, which was initially presented in February by MCD Commissioner Ashwini Kumar.
The proposal, presented by the Leader of the House, Mukesh Goyal, included reallocating ₹500 crore from the Mayor’s Fund and ₹300 crore from funds designated for road maintenance and construction. This fund will be used to regularise the workers and facilitate their promotion and salary adjustments. The Mayor, Mahesh Kumar Khechi, began the proceedings, and after several discussions, the new proposal was passed in the session, which saw disruptions.
The MCD’s decision to allocate ₹800 crore for regularising employees will be used for converting the contractual positions into permanent ones and ensuring the payment of salaries for those promoted. In addition to this, ₹200 crore allocated for road maintenance has been reduced, and the funds will now be diverted to support the newly established Councillor’s Fund. The proposal for this adjustment was introduced by the Aam Aadmi Party’s (AAP) Councillors Ankush Narang and Praveen Kumar.
Despite tensions and protests from opposition parties during the meeting, the Budget proposals were successfully passed after a brief suspension of the session due to disruptions. Members of the opposition, including BJP and Congress councillors, raised concerns about various issues related to the MCD. They even accused the ruling party of not properly addressing municipal matters. The Mayor’s Fund, initially set at ₹500 crore, has been scrutinised after it was moved to other areas following the inability to utilise it for its original purpose. The opposition also raised doubts about the transparency of this reallocation.
Furthermore, an important proposal to waive property taxes for properties up to 100 square yards for the fiscal year 2025-26 was reiterated during the meeting. This proposal, first brought up on February 25, seeks to provide relief to Delhi’s residents, particularly those owning small homes. For properties between 100 to 500 square yards, a 50 per cent reduction in property tax is also being considered.
Despite the opposition’s criticism, including the legality of this property tax waiver, the ruling party maintains that the proposal will benefit the common people and that discussions are ongoing with financial experts to ensure the implementation’s viability. Opposition Leader Raja Iqbal Singh questioned the legality and financial viability of the decisions, demanding a CBI inquiry into the Mayor’s Fund. Mayor Mahesh Kumar Khechi and senior AAP leaders defended the budget, stressing transparency. Political tensions persist as debates over municipal fund allocations continue.