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Chandigarh MC approves ₹2,176.4 cr budget for 2023-24

Chandigarh MC staring at 487-crore deficit with Centre allocating 555 crore grant-in-aid against its demand of 1,332.5 crore

Published on: Feb 8, 2023, 04:16:43 IST
By , Chandigarh
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Pinning its hopes on more grant-in-aid from the Centre, the Chandigarh municipal corporation on Tuesday approved a 2,176.4 crore budget for financial year 2023-24 with a 487-crore deficit.

Councillors during the General House meeting of the Chandigarh municipal corporation for the 2023-24 budget estimates. (Keshav Singh/HT)
Councillors during the General House meeting of the Chandigarh municipal corporation for the 2023-24 budget estimates. (Keshav Singh/HT)

While the corporation had demanded 1,332.5 crore as grant-in-aid (GIA) for the upcoming fiscal, expecting implementation of Fourth Delhi Finance Commission’s recommendations, it was allocated only 555 crore in the Union Budget on February 1.

In the MC budget, passed by the General House on Tuesday, the total revenue for the upcoming fiscal has been pegged at 2,176.4 crore, including the demanded 1,332.5 crore GIA, while the total expenditure is estimated to be 1,886.3 crore — a surplus budget of 290 crore on paper, but a deficit of 487 crore given the actual GIA allocation.

Even last year, the civic body was allocated 545 against its demand of 981 crore, which was worked out based on the 2014 report of Fourth Delhi Finance Commission that had recommended an allocation of 30% of the UT’s revenue to MC.

The Chandigarh MC House approved the 2023-24 budget on Tuesday. (HT)
The Chandigarh MC House approved the 2023-24 budget on Tuesday. (HT)

Primary focus on solid waste mgmt

For 2023-24, MC has earmarked 465.6 crore for capital expenditure, up from 401.42 crore last year, with solid waste management getting the biggest share of 118 crore.

In his speech, mayor Anup Gupta said 118 crore will be spent on city’s long-standing need for improving solid waste management, through construction of an integrated solid waste management plant, whose work will begin this year.

“MC’s own revenue receipts are expected to increase by 52.57% that is from 520.27 crore in fiscal 2022-23 to 793.81 crore in 2023-24. Our expenditure is expected to increase 49% approximately from 1,265.30 crore last year to 886.30 crore in upcoming fiscal,” Gupta said.

“The civic body is aiming to increase its own sources of revenue than levying more taxes on residents. We are working in this direction through increasing our overall coverage of property tax, efficient water billing system and better utilisation of our estate to earn our rightful share of income,” the mayor added.

Major projects on cards this year

Optical fibre throughout city: The civic body has proposed to lay a 900 km optical fibre network throughout the city to reduce damage to government utilities and inconvenience to public due to repeated digging of roads. It aims to generate an income of 25 crore through this project.

Unipoles in parking lots: Through unipoles in all parking lots and other suitable locations MC expects to earn 7.35 crore.

Smart parking: Bigger push to smart parking system with latest features, including auto ticketing, boom barrier, LED display, auto pay station, point of sale terminals, licence plate recognition camera, etc.

New convention centre: 16 crore have been set aside for upgrading community centres and for a new convention centre

Redesigning of roundabouts : A sum of 3 crore has been provided for redesigning of roundabouts, installation of surveillance cameras and setting-up of docking stations for cyclists in parking lots.

Opposition terms budget unrealistic

AAP councillor and former leader of opposition Yogesh Dhingra said the budget was not realistic, as the allocated funds will be exhausted in just meeting salaries and other expenses. There will be no funds left for development, especially of the 13 villages merged with MC, he said.

Congress councillor Gurpreet Singh Gabi questioned that when all other heads under the administration, like education, got over 1,100 crore, why was MC left behind? “There has been only a 10 crore hike in grant-in-aid this year,” he added.

  • Hillary Victor
    ABOUT THE AUTHOR
    Hillary Victor

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