Will Chandigarh MC’s annual grant be raised? Centre dodges MP’s question
To MP Manish Tewari’s question, the Centre stated that as per rules, the year-wise budgetary allocation is mentioned in the detailed demand for grants which is available in the public domain.
There seems to be no end to the municipal corporation’s (MC) financial woes with the Centre giving no clear response on whether its annual funds allocation will be increased.

The Centre, in response to a question in Parliament, stated that the annual allocation to the Chandigarh MC is made after taking into account the overall budget of the Union Territory and the estimated revenue receipts of the MC.
City MP Manish Tewari had asked why the MC is receiving an average annual allocation of only ₹560 crore, despite being responsible for majority of the city’s operations. He had also asked why the Centre is not implementing the Delhi Finance Commission’s revenue-sharing formula, which stipulates that 30% of the total budget should be allocated to the local bodies.
The Centre stated that as per rules, the year-wise budgetary allocation, the scheme-wise and head-wise expenditure out of it, are mentioned in the detailed demand for grants (DDG) which is available in the public domain.
The Chandigarh MC has time and again found itself on a tightrope walk, with the funds allotted to it failing to cover its committed liabilities of around ₹900 crore, which include staff salaries, pensions and water/electricity bills—expenditures that cannot be ignored.
The limited grant also makes it impossible for the civic body to resume vital development works that remain halted since May 2024. With no immediate resolution in sight, MC will have to work on increasing its revenue streams to meet the shortfall.
A host of the city’s civic infrastructure and amenities, including roads, water supply, waste disposal and sewerage, fall under MC’s ambit.
Last year, MC had requested ₹1,651.7 crore grant-in-aid from the UT administration, but received only ₹560 crore, after getting just ₹555 crore against ₹1,332.50 crore in FY 2023-24.
Even in 2022-23, its demand for ₹981 crore was slashed to ₹545 crore. This year-after-year shortfall continues to stunt the corporation’s ability to operate smoothly.
