Trifurcation of MCD: First Budget as Essential Tool of Governance

Monica Singhania and Mayank Sharma

Vision, 2014, vol. 18, issue 4, 261-275

Abstract: Trifurcation of Municipal Corporation of Delhi (MCD) in May 2012 posed a big challenge in terms of distribution of assets and liabilities in limited time considering the notification was issued only in December 2011. One of the biggest tasks was to prepare the budget of three newly formed corporations, namely, North, South and East Delhi Municipal Corporation, and its presentation and adoption on the very first day of their formation. This was essential to authorize the three newly formed corporations to start functioning, from day one, as distinct legal entities and to incur expenditure for development, socio-economic welfare and day to day administration. While trifurcating the budget, the importance of each head of revenue and expenditure and its significance in monitoring and control of associated physical activities was especially considered. We showcase in a step-by-step approach the installation and innovative development of budgetary system in the trifurcated MCD so as to highlight the use of this management tool as a prerequisite to good governance. From social perspective, budget plays a significant role in urban local bodies to enable them to meet their socio-political obligations. Good estimations are extremely important in order to be able to strike appropriate balance among multiple obligations. Trifurcation of budget was undertaken not only by adopting objective criteria based on availability of data but also keeping in mind the social and developmental obligations of the newly formed Corporations.

Keywords: Trifurcation; Budget; Governance; Reforms; Income; Expenditure; Urban Local Bodies; Municipal Corporation of Delhi (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:sae:vision:v:18:y:2014:i:4:p:261-275

DOI: 10.1177/0972262914551665

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