Union Budget 2023-24: Ahead of poll year, Centre hikes Chandigarh’s capex by 33%

The total budgetary allocation for Chandigarh in the Union Budget 2023-24, presented by Finance Minister Nirmala Sitharaman in Parliament on Wednesday, stood at ₹6,087 crore, a marginal increase of 13% from the previous fiscal’s ₹5,382 crore. The Chandigarh administration had sought ₹7,000 crore from the Centre this time.

Ahead of the election year, the Union government has increased Chandigarh’s allocation for development works by a whopping 33%, earmarking ₹722 crore under the head of capital expenditure.

Ahead of the election year, the Union government has increased Chandigarh’s allocation for development works by a whopping 33%, earmarking ₹722 crore under the head of capital expenditure. (HT File)

The total budgetary allocation for Chandigarh in the Union Budget 2023-24, presented by Finance Minister Nirmala Sitharaman in Parliament on Wednesday, stood at ₹6,087 crore, an increase of 13% from the previous fiscal’s ₹5,382 crore. The Chandigarh administration had sought ₹7,000 crore from the Centre this time.

Under the revenue head, which includes government spending on salaries, wages, subsidies and loan interests, UT has got ₹5,365 crore. Last fiscal, Chandigarh had got ₹4,842 crore under the revenue head and ₹539.33 crore as capital allocation, under which development works are undertaken.

Lion’s share for education sector

The major thrust this time is on the education sector, which has got an allocation of ₹1,102 crore (18% of the total budget). The money is to be spent on modernisation and purchase of equipment, development of infrastructure for NCC, graduate courses and construction of new polytechnic for women and industrial training institute. Last year, the budget allocated to the education sector was ₹882 crore.

On the other hand, the UT’s budget for power and renewable energy has been slashed, with an allocation of ₹963 crore for the financial year (FY) 2023-24 against ₹1,031 crore last fiscal. The funds under this head are meant for transmission and distribution of power, new and renewable sources of energy, promotion of model solar city programme, and construction work of the electricity department.

In other sectors, the budgetary allocation has increased.

For the housing and urban development sector, ₹844 crore has been earmarked, which will go into land acquisition, construction/ infrastructure development, urban roads, stormwater drainage, electrification, civic works, other capital expenditure, and dam across Sukhna Lake.

In the health sector, UT has been allocated ₹661 crore for spending on while last year, it was ₹609 crore. The allocation will go into the upgrade of the 50-bed community health centre to a 250-bed hospital, strengthening of 50-bed Poly Clinic, Chandigarh, strengthening of rural subsidiary health centres, strengthening of urban subsidiary health centers, strengthening of employees state insurance scheme, other health care schemes, AYUSH Homeopathy and Ayurveda, construction of regional trauma centre, mental health institute, and government rehabilitation institute for intellectual disabilities.

For transport sector, UT has got ₹405 crore that is to be spent on purchase of new buses, replacement of condemned buses and upgrade of bus stand, computerisation of Chandigarh Transport Undertaking, construction of Link Road, purchase of video coach buses for intercity transport.

The major thrust this time is on the education sector, which has got an allocation of ₹1,102 crore (18% of the total budget). (HT Photo)

Infra boost for city, says BJP, oppn says nothing new

Reacting to the budget, Chandigarh BJP president Arun Sood said that with a ₹704 crore increase in budgetary allocation, it will be a big boost to education, health, and urban development projects in the city. “In case more funds are required, we will ask the Union ministry for the same,” he said.

Former Union minister Pawan Kumar Bansal said that a step-motherly treatment has been meted out to Chandigarh. Last year, Chandigarh was allocated ₹419.33 crore for capital expenditure but the Union government released only Rs. 352.47 crore, which was even less than the actual capital expenditure of ₹365.32 crore spent during 2021-22.

AAP’s Chandigarh unit president Prem Garg said there is nothing new for Chandigarh in the budget except the routine grants. “No new project has been given to the city and with the said allocation, only pending projects will be completed.”