Chandigarh turns to Centre for ₹223 crore more

Centre had previously not responded to UT’s demand for additional ₹580-crore

After its hopes for a supplementary grant of ₹580 crore were dashed in the Union budget, the UT administration has now sought an additional ₹223 crore from the Centre.

Following the interim budget in February, UT in May had demanded a ₹580-crore supplementary grant from the Centre, but got no response. This included ₹300 crore for smart city projects, ₹100 crore for power purchase and ₹125 crore as grant-in-aid for the municipal corporation (MC).

While UT had sought ₹5,200 in the annual budget, it got ₹4,753 crore in the interim budget, a nearly 5% hike from the 2018-19 allocation of ₹4,536 crore. Later, there was no change in the Union budget announced in August.

For 2019-20, ₹4,351.5 crore is under the revenue head, used to pay salaries and handle others expenses, while ₹401 crore is capital expenditure for development works and creating new assets.

Of the ₹223 crore requested now, ₹146 crore is for revenue expenses and ₹77 crore for capital expenditure (new works).

“A major component under the capital head is ₹60 crore for land acquisition. Besides, ₹10 crore will be used by the engineering department, and around ₹7 crore by the transport department,” said a senior UT official, who didn’t want to be named.

Under the revenue head (salaries, etc), ₹125 crore will be for MC and ₹21 crore for purchasing power.

MC had initially demanded ₹1,000 crore for the financial year, but got ₹375 crore ingrant-in-aid. It has recently requested additional ₹200 crore from the UT.

More than 50% of the administration’s budget, around ₹2,000 crore is earmarked for paying salaries, while ₹800 crore will be spent on power purchase.