Mohali MC’s proposed budget for FY 2025-26 slashed by ₹22 crore

The civic body had sought ₹211 crore, projecting a surplus budget against an estimated expenditure of ₹158.69 crore, but the local bodies department has sanctioned only ₹188 crore after making substantial reductions under key heads.

The Punjab local bodies department has imposed a ₹22 crore cut in the proposed budget of the Mohali municipal corporation (MC), which is already struggling with a financial crunch, for the year 2025-26.

The Mohali MC had proposed ₹100 crore for the municipal funds, but only ₹90 crore was approved. Similarly, the proposal of ₹10 crore for municipal tax on electricity was slashed drastically, with just ₹1 lakh sanctioned. (HT Photo)

The civic body had sought ₹211 crore, projecting a surplus budget against an estimated expenditure of ₹158.69 crore, but the local bodies department has sanctioned only ₹188 crore after making substantial reductions under key heads.

The expenditure plan included ₹64.50 crore under the establishment head, ₹6.9 crore under contingency, ₹52.19 crore for committed expenses, and ₹35.31 crore for non-committed expenses.

The MC had proposed ₹100 crore for the municipal funds, but only ₹90 crore was approved. Similarly, the proposal of ₹10 crore for municipal tax on electricity was slashed drastically, with just ₹1 lakh sanctioned.

But the department approved the entire proposed ₹15 crore for solid waste management, which mayor Amarjit Singh Sidhu described as the city’s “most pressing issue.”

Sidhu said, “This year again, ₹22 crore has been cut. We will write to the state government for additional funds, especially since heavy rains have left major city roads in a poor condition.In the last financial year (2024-25), the department approved ₹160 crore against our proposed ₹173 crore.”