Month left in fiscal year, Ludhiana MC still ₹240 crore short of proposed revenue generation
The shortfall has raised concerns over financial management of the body and cast a show of the works being carried out and to be started
{Month left in fiscal}
With only a month left in the current financial year, the municipal corporation (MC) is still ₹243 crore short of the proposed revenue generation of ₹923.5 crore, according to data from the civic body.
The shortfall has raised concerns over financial management of the body and cast a show of the works being carried out and to be started.
Officials aware of the matter attributed the shortfall primarily to non-recovery from key sources such as change of land use (CLU) charges, fines for illegal constructions, composition fees, tower fees and other important levies.
MC commissioner Aaditya Dachalwal affirmed that all efforts were being made to make up for the shortfall. He said, “We are trying to complete the proposed budget, and additional teams have been formed to recover the amount”.
According to the information available, MC’s main revenue sources include municipal tax, property tax, water tax, additional excise duty, fine for illegal construction composition fee/tower fee, municipal tax on electricity, change of land use, advertisement tax, building fees/ plan sanction regularisation fee, tehbazaari composition fee and sale of land, among others.
On Monday, cabinet minister Ravjot Singh took a review meeting of the projects and ongoing working. He directed officials concerned to speed up revenue collection.
A senior MC official said, “We are making every possible effort to recover the amount. However, delays in payments have affected our collection.”
In change of land use fees, the MC had estimated ₹1.5 crore but has recovered only ₹24 lakhs so far.
From illegal construction fines and composition fees, the MC had proposed to recover ₹40 crore in the current fiscal. However, the number stands at ₹16 crore.
Officials said many building owners who were fined for illegal constructions have not cleared their dues so far. The MC had proposed a collection of ₹140 crore from property tax and has collected ₹127 crore so far, making it the closest to the target.
The MC plan for the next fiscal depends on the recovery of dues and if the shortfall continues, it may affect the civic body’s ability to undertake developmental projects and maintain infrastructure in the city.
An MC official, requesting not to be named, said, “We are exploring stricter measures, including legal action against defaulters, to ensure that the dues are collected before budget finalisation.”
Citizens and councillors raised concerns, urging the administration to ensure timely recovery so that public services are not affected.
