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Work on boosting revenue, Kataria reiterates to cash-strapped Chandigarh MC

Chandigarh administrator Gulab Chand Kataria had called a meeting to discuss the civic body’s financial challenges and finalise its budgetary demands for financial year 2025-26

Published on: Jan 29, 2025, 10:04:06 IST
By , Chandigarh
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Meeting the Chandigarh municipal corporation once again over its ongoing financial crisis that has halted development works across the city since May 2024, UT administrator Gulab Chand Kataria on Tuesday reiterated that the civic body should work on enhancing its revenue to become self-sufficient.

Reviewing the MC’s budget income and expenditure at UT Secretariat, Chandigarh administrator Gulab Chand Kataria stressed that the corporation should boost its own revenue by optimising property tax receipt, collection of the arrears of property tax and water charges, reformation of bylaws of property tax and rationalisation of manpower. (HT File)
Reviewing the MC’s budget income and expenditure at UT Secretariat, Chandigarh administrator Gulab Chand Kataria stressed that the corporation should boost its own revenue by optimising property tax receipt, collection of the arrears of property tax and water charges, reformation of bylaws of property tax and rationalisation of manpower. (HT File)

The administrator had called the meeting, which included senior officials from MC and the UT administration, to discuss the civic body’s financial challenges and finalise its budgetary demands for financial year 2025-26, ahead of the Union budget announcement.

Reviewing the MC’s budget income and expenditure at UT Secretariat, Kataria stressed that the corporation should boost its own revenue by optimising property tax receipt, collection of the arrears of property tax and water charges, reformation of bylaws of property tax and rationalisation of manpower.

Even in past meetings, where MC officials had sought financial assistance to help the civic body tide over its fiscal mess, the administrator had told them to focus on increasing MC’s own revenue streams rather than relying on external funding.

Despite the ongoing crisis, including delays in paying staff salaries, the administrator has been emphasising the need for cost-cutting measures and self-sufficient revenue generation.

Defaulters told to clear arrears

On Tuesday, Kataria also directed the representatives of government departments and other autonomous bodies, such as PGIMER, Panjab University and PEC, present in the meeting, to pay the arrears of property tax and water charges to the corporation immediately.

The administrator further directed that MC should optimally utilise its vacant land and properties to enhance its financial position.

MC commissioner Amit Kumar presented the current financial position of the corporation, and the ways and means by which the civic body can come out of the present crisis. He also reiterated the request for additional grant-in-aid.

The commissioner presented the Budget outlays for the last five years, stressing that in comparison to the rate of increase in corporation’s own income sources and expenditure, the grant-in-aid had not been increased proportionately.

He suggested that MC could increase its revenue through recovery of outstanding arrears from water bills and property tax; optimal utilisation of vacant land and properties; reformation of property tax structure; rationalisation of manpower; increase of revenue from advertisements; and booking of community centres.

UT chief secretary Rajeev Verma, additional chief secretary to governor K Siva Prasad, principal secretary to governor Vivek Pratap Singh, UT finance secretary Diprava Lakra, health secretary Ajay Chagti and other senior officers of the UT administration also attended the meeting.