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Chandigarh: In election year, MC gets ₹850 crore boost
Last year, the MC had received ₹625 crore, which was later enhanced by an additional ₹25 crore at the revised estimates stage, taking the total grant for 2025-26 to ₹650 crore
In an election year, the Chandigarh municipal corporation (MC) is set to receive a ₹850 crore boost as grant-in-aid for 2026-27, the highest-ever allocation in the civic body’s history. The general elections for the Chandigarh MC are scheduled for December this year.
The Centre has released the funds to the UT administration, which will subsequently transfer the amount to the civic body.
Last year, the MC had received ₹625 crore, which was later enhanced by an additional ₹25 crore at the revised estimates stage, taking the total grant for 2025-26 to ₹650 crore.
This year’s allocation is ₹200 crore more than the previous year, bringing a much-needed relief to the MC, which has had to go slow on several projects due to funding issues.
Mayor Saurabh Joshi welcomed the allocation, stating, “This will bring a wave of development in Chandigarh and help the MC accelerate long-pending infrastructure and civic projects.”
Senior MC officials said the increased grant would help the corporation overcome its persistent financial crisis and ensure smooth functioning of essential civic services. They added that the corporation would no longer face difficulties in disbursing salaries and meeting routine operational expenses.
MC eyeing ₹450 crore from own revenue sources
According to officials, the MC’s estimated monthly expenditure for the financial year 2026-27 is around ₹85 crore, which includes employee salaries and allowances, electricity and water bills, pensions, fuel costs, and other recurring liabilities. On an annual basis, the total mandatory expenditure is projected at approximately ₹1,020 crore.
Apart from the Centre’s grant-in-aid, the MC has also set a target of generating ₹450 crore from its own resources during 2026-27. This revenue is expected to come from property tax collections, water charges, booking fees, and recovery of outstanding dues.
If the corporation achieves its revenue targets, the total available funds for 2026-27 will rise to around ₹1,300 crore. After meeting the mandatory annual expenditure of ₹1,020 crore, the MC is expected to have nearly ₹280 crore available for development works, including road repairs, sanitation upgrades, park development, stormwater drainage, and other civic infrastructure projects.
Budget to be tabled in special MC House meeting
The MC will now convene a special House meeting in the coming days to formally present its budget for the financial year 2026-27. During the meeting, detailed information will be shared with councillors regarding the funds received from the administration as well as projected income from various municipal revenue sources.
The House will also be apprised of estimated expenditure and income for the upcoming year. The budget will be debated and passed in the presence of all councillors, after which it will be formally implemented.
It may be recalled that the MC had sought a grant-in-aid of ₹1,265 crore for 2026-27, which also included recommendations of the Fourth Delhi Finance Commission.
