UT administration falls ₹700 crore short its of projected tax revenue
According to figures updated by the Comptroller and Auditor General of India (CAG), out of a total revenue expenditure of ₹5, 858 crore, the administration incurred ₹5,053 crore in expenditure by December 31, 2024, leaving ₹708 crore to be spent in the last quarter
Even though the Chandigarh municipal corporation is passing through financial straits, the UT administration is also facing challenges, with a shortfall of ₹700 crore in tax revenue against the projected income as of December 31, 2024.
According to figures updated by the Comptroller and Auditor General of India (CAG), out of a total revenue expenditure of ₹5, 858 crore, the administration incurred ₹5,053 crore in expenditure by December 31, 2024, leaving ₹708 crore to be spent in the last quarter.
As per the CAG, the monthly expenditure of the administration is approximately ₹550 crore, which means that its requirement is of ₹1,650 crore for the last quarter, against the available ₹708 crore.
The figures further revealed that against the target of ₹6,112 crore, the UT earned ₹4,338 crore by December 31, 2024. It should have earned ₹4,584 crore in the last nine months, resulting in a revenue deficit of ₹260 crore.
The budget allocation for 2024-25 was ₹5,858 crore, with ₹4,800 crore designated as tax revenue and ₹1,312 crore as non-tax revenue. Revenue from GST, stamp duty, property tax, excise, VAT, vehicle tax, sales tax, and other taxes constitutes tax revenue, while revenue from the Chandigarh Transport Undertaking (CTU), police services, Sampark services, power, and road transport falls under non-tax revenue.
Major losses were recorded in Goods and Services Tax (GST) collection, where the UT received only ₹1,191 crore, compared to the anticipated ₹1,900 crore, by December 31, 2024. From stamp duty, the UT received ₹198 crore against the expected ₹300 crore. Similarly, in state excise, only ₹645 crore were collected against the target of ₹1,000 crore by December 31, 2024. In sales tax, the UT earned ₹421 crore against the target of ₹615 crore.
UT finance secretary Diprava Lakra stated that there is no shortage of funds. “We have spent around 80% of the revenue expenditure, and we will manage the rest,” he said.
RK Garg, a city-based social activist, criticised the administration, stating, “Due to imprudent financial policies, the UT administration is losing revenue across all sectors. It should review its policies seriously.”
