Puneet Goel, the commissioner of South Delhi Municipal Corporation presented the budget of Rs. 5,437 crore for the financial year 2019-20 and said that timely completion and expansion of realty projects is important for the better financial condition of the authority.
While talking about an increase in allocation of funds for the educational and public health sector, the commissioner said that it takes a couple of years’ time to bring projects on the ground from papers. Hence, we propose increase of 1-2 percent in residential property tax. This will work as filler and 15% was mooted for non-commercial properties.
The South Delhi Municipal Corporation is likely to generate a total of Rs. 25 crores as property tax by imposing an education cess of 1% on the total value of property tax. A proposal is also tabled to levy professional tax on the taxable income of Rs 30 crore. According to the sources, the South Delhi Municipal Corporation is planning to slash few rebates under some categories.
The Commissioner justified the increase in property rate and said that the Corporation hasn’t implemented the report of the municipal valuation committee that states unit area value, as the basic requirement of property tax calculation.
The South Delhi Municipal Corporation is likely to earn Rs. 800 crore as property tax in this financial year and estimates an increase of 15% next year. The authority also plans to spend 18.15% of its funds on education and 1% cess to boost the sector. All primary schools are planned to be equipped with at least one smart classroom and e-slates for nursery children.
Apart from this, the corporation also plans redevelopment of Meherchand Market, a plush commercial zone in Lodhi Colony and pedestrian path in market areas that lack proper parking facility.