With no new project and no fresh tax, the municipal corporation (MC) of Mohali has proposed a budget of ₹148 crore against an expenditure of ₹146 crore, with ₹2 crore surplus for the year 2021-22.
In 2020-21, the MC House had approved a budget of ₹268 crore, but the Punjab local bodies department had imposed a cut of ₹141 crore and approved only ₹127 crore.
The budget for the year 2021-22 will only be approved in the first meeting of the House. Though the results of the MC elections were declared on February 18, Punjab is yet to notify it and the elected councillors are yet to take oath. For the last five years, the civic body has been facing a budget deficit.
₹75 crore proposed for park maintenance
Now that all parks of the new sectors 76 to 80 have been transferred from the Greater Mohali Area Development Authority (GMADA) from April 1, the civic body has proposed a budget of ₹75 crore out of a total ₹100 crore as they have already received ₹25 crore from GMADA for park maintenance.
In 2019-20, the MC had proposed a ₹22.2-crore deficit budget, and in 2018, the MC passed ₹128 crore annual budget showing ₹15 crore deficit for the 2018-19 fiscal.
{{/usCountry}}In 2019-20, the MC had proposed a ₹22.2-crore deficit budget, and in 2018, the MC passed ₹128 crore annual budget showing ₹15 crore deficit for the 2018-19 fiscal.
{{/usCountry}}MC commissioner Kamal Kumar Garg said, “Due to the pandemic, we suffered a loss of nearly ₹10 crore, but we will now focus on increasing the collection from various factors like building application fee, licence fee and tehbazari (licence to squat and sell goods in a particular location). This will give us a boost of nearly ₹10 crore. Also, the budget will be approved in the first House meeting of the councillors.”
Revenue curtailed due to Covid in 2020-21
The MC had expected to earn ₹28 crore from property tax, but got only ₹17 crore; from excise duty, MC was to get ₹30 crore, but got just ₹12.5 crore from the state government.
A major blow came in the form of unipole advertisers when the state government waived off the ₹5-crore fee for six months after six companies sought it citing no revenue earned. The civic body was to earn ₹11 crore, it got only ₹1.42 crore from advertisers as most of them did not even pay their pending dues. On the account of tehbazari fee, MC was to collect ₹60 lakh, but earned only ₹32 lakh.