MCG clears ₹1,918-cr budget amid revenue gaps, pending dues

Only ₹1,240 crore collected so far, about 72.75% of target; councillors flag ₹700 crore pending stamp duty dues from state.

The Municipal Corporation of Gurugram (MCG) on Wednesday unanimously passed its ₹1,918 crore budget for 2026–27, with a projected expenditure of ₹1,875 crore, prioritising sanitation and infrastructure even as concerns were raised over revenue shortfalls and pending dues.

Mayor Raj Rani Malhotra, along with MCG commissioner Pardeep Dahiy chairs the 2026–27 budget meeting at John Hall in Civil Lines near Vijayant Park in Gurugram on Wednesday. (Parveen Kumar/HT)

The budget was approved during a special House meeting in Civil Lines, chaired by mayor Raj Rani Malhotra, in the presence of councillors, senior officials and municipal commissioner Pradeep Dahiya.

Chief accounts officer Vijay Kumar outlined key revenue streams, including ₹500 crore from stamp duty, ₹325 crore from property tax, ₹80 crore from water and sewerage charges, and ₹100–120 crore from advertisement fees. However, officials said the corporation has collected only around ₹1,240 crore so far in the current financial year, about 72.75% of its target, raising concerns over revenue realisation.

On the expenditure side, ₹400 crore has been allocated for sanitation and solid waste management, including door-to-door collection and mechanised cleaning. Development works such as roads, sewer lines, parks and community centres will receive ₹405 crore, while ₹250 crore has been earmarked for operations and maintenance. Establishment expenses, including salaries and pensions, are projected at ₹320 crore.

HT graphic

The House witnessed sharp discussions on revenue gaps and long-pending dues. Councillors flagged nearly ₹700 crore in pending stamp duty transfers from the state government, of which only ₹218 crore has been received. They also sought faster recovery of over ₹100 crore in dues from builders and strengthening of collection mechanisms.

Municipal commissioner Pradeep Dahiya said the civic body is exploring municipal bonds, on the lines of Indore and Surat, to fund infrastructure projects such as water supply and sewer networks. He added that ₹185 crore would be recovered for incomplete development works in colonies transferred from HSVP.

The meeting also highlighted governance concerns, with councillors expressing dissatisfaction over cleanliness across wards. Some stated that “not a single ward can be called clean.” Issues of coordination were also raised, with councillors alleging that RWAs often bypass elected representatives. Dahiya said elected representatives cannot be sidelined and action would be taken in case of lapses.

Councillors further demanded that House meetings be held monthly to improve monitoring and accountability. The commissioner assured that additional sessions would be scheduled in April to address pending issues.