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Chandigarh MC gets shot in the arm as UT releases complete grant-in-aid
Amid paucity of funds, the cash-strapped corporation has been struggling to pay salaries to its employees and had to even monetise one of its fixed deposits and divert funds from other heads.
In a major financial relief for the beleaguered municipal corporation, the UT administration has decided to release the entire pending grant-in-aid of Rs 173 crore to it.
On Wednesday, it issued Rs 73 crore to MC, while the rest of the Rs 100 crore will be released in the next three months. With more funds, the civic body plans to revive development works it had suspended earlier.
As part of the 2020-21 Budget, UT had allotted a meagre Rs 425 crore for MC as grant-in-aid. Following losses amid the Covid-19 pandemic, the administration had announced to even cut this down by 20%.
However, now the funds have been restored and the corporation will receive the original aid of Rs 425 crore.
MC’s own revenue collection also took a hit in the wake of the outbreak, forcing it to suspend all development works, even those already approved. Amid paucity of funds, it has been struggling to pay salaries to its employees and had to even monetise one of its fixed deposits and divert funds from other heads.
Meanwhile, the administration has directed MC to augment its revenue and work out modalities for reducing expenditure.
Development plans back on table
With restoration of the aid, MC will be preparing a detailed plan of development works to be carried out. Recently, the civic body had earmarked around Rs 8 crore for councillors for priority works in their wards.
“MC has asked the councilors to submit a list of works that have to be carried out in their wards. Urgent works will be carried out on priority based on their recommendation,” said MC commissioner KK Yadav.
