Need ₹310 crore to resume stalled civic works, MC urges Chandigarh admn for aid

Sharing a proposal with the UT finance department on Friday, Chandigarh MC officials sought additional funds from the central government under the revised budget estimates for financial year 2025-26

The cash-strapped Chandigarh Municipal Corporation (MC) needs at least ₹310 crore more to resume the long-stalled development works across the city.

For the ongoing fiscal, Chandigarh MC had cleared an annual budget of ₹2,114 crore, heavily banking on allocations under the Centre’s fourth Delhi Finance Commission (DFC) recommendations. However, the UT administration sanctioned only ₹625 crore as a regular grant, while the civic body projected an income of ₹410 crore from its own sources. (HT Photo for representation)

Sharing a proposal with the UT finance department on Friday, MC officials sought additional funds from the central government under the revised budget estimates for financial year 2025-26.

With the civic body undergoing a crippling fund crunch, projects ranging from road repairs to sewerage and water supply improvements have been on hold since May last year.

For the ongoing fiscal, MC had cleared an annual budget of ₹2,114 crore, heavily banking on allocations under the Centre’s fourth Delhi Finance Commission (DFC) recommendations. However, the UT administration sanctioned only ₹625 crore as a regular grant, while the civic body projected an income of ₹410 crore from its own sources.

To ease the crisis, the Centre provided an additional ₹125 crore, taking the total receipts to around ₹1,160 crore — barely half of the approved budget.

But with committed liabilities of ₹1,154 crore, covering salaries, pensions and payments for electricity and water, there is no room left to restart capital works.

Even so, MC has released ₹32 crore for emergent projects, dipping into its revenue head. That amounts to only 7% of the ₹467 crore required for development works this year.

MC commissioner Amit Kumar clarified the shortfall, stating, “We need at least ₹310 crore more to continue the much-needed capital works in the city. We have sent the fund request to the UT administration with the revised budget estimates.”

Of the ₹310 crore requested, ₹300 crore is meant for capital works and the remaining ₹10 crore to cover a revenue deficit created by diverting funds towards development projects.

Meanwhile, residents are bearing the brunt of MC’s depleted coffers, with around 250 km of city roads riddled with potholes. Road carpeting, typically carried out in March-April and October-November, has been suspended since May 2024, missing two favourable road work seasons.

Chandigarh’s 70-year-old sewerage system, running 800 km, is also crumbling. Officials estimate at least ₹600 crore in dedicated funds will be required for large-scale de-silting and strengthening, failing which the city may face repeated breakdowns in the years ahead.