In a major move aimed at benefiting the contractual workforce of the Municipal Corporation of Delhi (MCD), the city’s local governing body has allocated Rs 800 crore in its budget to regularise 12,000 contractual employees. This allocation is part of the Revised Budget Estimates for 2024-25 and the Budget Estimates for 2025-26, both of which were passed during a special MCD meeting held amidst significant uproar and protests.

MCD Budget Passage Amidst Chaos

The special session of the MCD House saw a dramatic and chaotic start as Aam Aadmi Party (AAP) and Bharatiya Janata Party (BJP) councillors clashed, shouting slogans against one another. Despite the disturbances, the budget proposals were eventually debated and passed.

Among the most notable developments was the Rs 800 crore allocation to cover the salaries of the 12,000 contractual employees, fulfilling a long-standing demand. This allocation marks a significant step by the AAP-led MCD government to regularise the workers, who had been working on a temporary basis for years.

Arvind Kejriwal’s Statement

AAP National Convener and Delhi Chief Minister Arvind Kejriwal took to X (formerly Twitter) to celebrate the success, writing, "Big news for the 12,000 temporary employees of the Delhi Municipal Corporation. The Aam Aadmi Party government in the corporation has allocated Rs 800 crore in the budget, fulfilling their long-pending demand. Now, all these employees will be regularised -- something only the Aam Aadmi Party could achieve. Congratulations to all the employees and their families."

This statement was welcomed by the employees who have long awaited regularisation and permanent status in their roles within the MCD. The allocation of Rs 800 crore is seen as a crucial step in addressing their demands and providing them with long-term job security.

Proposals for Sanitation and Infrastructure Rejected

In addition to the regularisation announcement, the meeting discussed several other proposals. The proposal to reduce the budget by Rs 6 crore for maintenance and repair of school buildings was rejected. Similarly, a proposal for an Rs 18 crore cut for improving sanitation services also failed to gain approval.

However, Raja Iqbal Singh, the Leader of Opposition, proposed several changes, including an allocation of Rs 25 lakh to the Horticulture Department for the procurement of benches. This proposal was also rejected, highlighting the continued disagreement between the AAP and BJP-led councillors over budget priorities.

On a more positive note, Singh’s proposal to allocate funds for women's toilets in public places was approved, alongside a minor reduction in sanitation expenses.

Increase in Councillor Development Fund

One of the significant changes in the 2025-26 budget is the increase in the development fund allocated to each councillor. The fund has been raised from Rs 75 lakh to Rs 1.55 crore. This increase will provide councillors with more resources to initiate local development work in their constituencies. However, the extra Rs 80 lakh required for this increase will be drawn from road maintenance funds, a decision that may raise concerns among some groups about the prioritisation of roadwork over other essential services.

Mayor and Leader of the House React

After the chaotic meeting, MCD Mayor Mahesh Kumar and Leader of the House Mukesh Goyal held a press conference to confirm that the budget had passed despite the disruptions. Both leaders emphasised that the allocation for contractual employee regularisation was a key highlight of the meeting and expressed confidence that it would positively impact the lives of thousands of MCD workers.

What’s Next for MCD and the AAP Government?

As the budget for 2024-25 and 2025-26 is now finalised, the focus shifts to the implementation of the proposals. The regularisation of 12,000 employees is likely to dominate the agenda in the coming months, with employees and trade unions watching closely to ensure the government follows through on its promise. At the same time, the BJP-led opposition will continue to monitor how the AAP government manages the budget's other priorities, such as sanitation and infrastructure development.

The Rs 800 crore allocation is just one step in the ongoing political and administrative drama at the MCD, with future budget meetings likely to remain contentious as both the AAP and BJP try to gain political ground ahead of upcoming elections.

Conclusion

The Delhi MCD budget for 2024-25 marks a significant moment in the city’s governance, with the regularisation of 12,000 contractual employees taking centre stage. The budget's passage, despite the raucous opposition, reflects the AAP-led administration's continued push for social welfare measures, even as the BJP-led opposition challenges various aspects of the fiscal proposals. As the city moves forward, the key test will be in the execution of these policies and the ability of the government to navigate the political and logistical hurdles ahead.

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