Last year, the civic body had received only <span class='webrupee'>₹</span>425 crore against its demand of <span class='webrupee'>₹</span>1,076 crore in grant-in-aid from the administration. (HT FILE PHOTO)
Last year, the civic body had received only 425 crore against its demand of 1,076 crore in grant-in-aid from the administration. (HT FILE PHOTO)

Chandigarh MC seeks 1,058 crore from admn for 2021-2022

The municipal corporation has demanded 1,058 crore from the UT administration in its proposed budget of 1,590 crore for the financial year 2021-2022
By Munieshwer A Sagar, Chandigarh
PUBLISHED ON JAN 26, 2021 12:12 AM IST

The municipal corporation has demanded 1,058 crore from the UT administration in its proposed budget of 1,590 crore for the financial year 2021-2022.

Last year, it had received only 425 crore against its demand of 1,076 crore in grant-in-aid (GIA). Last week, the administration had promised to increase that GIA to 500 crore for the coming fiscal.

The GIA projection has been made on the basis of the recommendations of the 4th Delhi Finance Commission, which the MC is yet to receive, even though UT administrator VP Singh Badnore had written to the Centre for its implementation.

Seeing that the civic body has failed to generate its own funds, it is heavily dependent on the funds from the administration to carry out development and for routine expenditures like staff salaries.

MC’s receipts for the financial year 2021-22 are estimated to be 469 crore. Traditionally, it has fallen short of budget estimates of receipts. For the current fiscal too, as per the revised estimates of receipts for 2020-21, it will earn only 317 crore against the budget estimate of 402 crore. MC officials blame the pandemic for the shortfall in its receipts.

Budget deficit pegged at 62.91 crore

The MC has pegged the budget deficit for the coming fiscal at 62.91 crore. For the current financial year, the deficit is expected to be 117.69 crore.

Recurring expenditure on salaries and other liabilities like power and fuel bills (revenue expenditure) is estimated to be 1,178 crore of the total budget outlay of 1,590 crore for 2021-2022.

For new projects, development and infrastructure works, MC has reserved 412.45 crore (capital expenditure).

The proposed budget will be tabled in the budget meeting next month. Following an approval with expected minor changes, it will be sent to the UT administration.

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