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Amid fiscal crisis, Chandigarh MC allocates Rs 50 lakh for ‘unfruitful’ study tours

In 2017-18, the MC had allocated Rs 30 lakh for study tours, of which Rs 23 lakh were spent. However, a request for Rs 25 lakh was made to the accounts department, which was turned down.

Updated on: Feb 14, 2018 01:23 PM IST
Hindustan Times, Chandigarh | By
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Even as the Comptroller and Auditor General (CAG) of India in its report last year came down heavily on the Chandigarh municipal corporation (MC) for making “unfruitful” expenditure of Rs 50 lakh on study tours over four years, the civic body has allocated an equivalent budget for the purpose for just a single fiscal.

The development comes amid major financial crunch being faced by the MC because of which several projects are hanging fire. (HT File)
The development comes amid major financial crunch being faced by the MC because of which several projects are hanging fire. (HT File)

The development comes amid major financial crunch being faced by the MC because of which several projects are hanging fire.

The provision for Rs 50 lakh for study tours has been kept in the budget of Rs 910 crore approved for 2018-19 by the MC’s finance and contract committee on Monday.

CAG raised objection

In December last year, the CAG had questioned “wastage” of public money and found several irregularities in the conduct of study tours (see box).

The report stated that as study tours are conducted to bring about improvement in the existing infrastructure and facilities for the betterment of citizens or for implementing a new project of public interest, the reports should be submitted within 10 days. However, in the case of the Chandigarh MC, reports were not submitted even after three months, no improvement was made in the existing facilities and no new project was started, it said, adding that it resulted in Chandigarh “lagging behind far back in the race of the cleanest city of India”.

Calling the expenditure made on these study tours “unfruitful”, the report also questioned as to how nine councillors took along family members and didn’t submit the expenses incurred.

Finances in doldrums

Meanwhile, the UT has approved only Rs 269 crore grant to the MC against its demand of Rs 1,100 crore for 2018-19. With the civic body left with just Rs 25 crore in its fixed deposit and only Rs 10 crore being generated per month through its own sources of income, the MC faces exhaustion of its funds by February-end.

If it doesn’t receive central funds, it may not be able to pay salaries to its employees and carry out development works for the month of March. The MC spends Rs 60 crore every month on paying salaries and implementing various works.

 
ABOUT THE AUTHOR
Hillary Victor

Hillary Victor is a Special Correspondent at Chandigarh. He covers Chandigarh administration, municipal corporation and all political parties.

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