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Thursday, February 25, 2021

Hopes dashed for municipal corporation, allotted 1/3rd of budget it had passed

The municipal corporation was expecting a grant in aid of over Rs 1,000 crore from the UT Administration and they got nearly half of it.

Written by Hina Rohtaki | Chandigarh |
February 2, 2021 1:09:11 am
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Hopes of the Chandigarh Municipal Corporation were dashed Monday as it was allocated only Rs 502 crore in the Union Budget for the fiscal 2021-22. With this, the civic body would be staring at another financial crisis this year. Interestingly, this amount has been allocated when the UT civic body has already passed a budget of Rs 1,627 crore.

The municipal corporation was expecting a grant in aid of over Rs 1,000 crore from the UT Administration and they got nearly half of it. However, the grant in aid to be received this year is slightly more than what it got last year, which is Rs 425 core.

The municipal corporation’s own committed liabilities form around Rs 500 crore a year. Committed liabilities include expenses like electricity, water, salaries and pension of employees — expenditure which they cannot ignore. Remaining, if any, would be spent on development works of the city. Municipal corporation handles roads of the city, water supply, waste disposal, sewerage and other civic works.

In the budget passed by it, for building and roads, the civic body has allocated around Rs 80 crore while Rs 55 crore has been allocated for augmentation of water supply. Moreover, Rs 23.60 crore has been allocated for ward development fund and Rs 47 crore has been kept for village development fund. Sewerage and civic works form around Rs 45 crore.

Municipal corporation’s own expected revenue is really less as compared to the budget it has prepared. From petrol pumps, the MC aims to earn Rs 130 crore, while from property tax it expects to earn Rs 50 crore. From water tariff and sewerage cess, civic body aims to earn around Rs 150 crore while it is expecting around 130 crore from other receipts.

The finance and contract committee of Chandigarh Municipal Corporation in its meeting has already approved the budget estimates of Rs 443 crore under capital head and Rs 1,184 crore under the revenue head for the financial year 2021-22.

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