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Chandigarh turns to Centre for 223 crore more

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

Updated on: Oct 02, 2019 12:52 AM IST
Hindustan Times, Chandigarh | By , Chandigarh
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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.

HT Image
HT Image

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.

“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 in
grant-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.

 
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