Gurgaon: MCG likely to hike its budget for upkeep of sectors transferred from Huda

In budget for the fiscal 2018-2019, total allocation may exceed ₹2,500 crore, with development projects accounting for around ₹1,200 crore.

After allotting funds for the construction of three underpasses and ensuring smooth functioning of the fledgeling Gurugram Metropolitan Development Authority (GMDA), officials of the Municipal Corporation of Gurugram (MCG) have said that the civic body will pledge more funds in its budget for fiscal 2018-’19 than what it did for the budget 2017-’18.

The MCG is expected to complete taking over all sectors from Huda by March 31, and the municipal budget is likely to be presented in April. (Parveen Kumar/HT Photo)

MCG officials said that since the civic body has already allotted ₹140 crore to the National Highways Authority of India (NHAI) for the construction of three underpasses at Rajiv Chowk, Iffco Chowk and Signature Towers, and another ₹500 crore to the GMDA, the civic bosses are considering allocating more funds towards development projects in fiscal 2018-’19.

‘There will be a quantum jump in our expenses, as more funds will be allocated for development projects. The MCG spent a considerable sum for the purpose last year and with the ongoing transfer of Huda (Haryana urban development authority) sectors and the proposed transfer of nine private colonies to the MCG, there is likely to be an increase in our fund allocation and expenses,” Sudhir Singh Chauhan, senior town planner, MCG, said.

MCG is expected to complete taking over all sectors from Huda by March 31, and the municipal budget is likely to be presented in April.

Chauhan said that the MCG’s accounting department is currently compiling the requisite sum needed for the development projects to be undertaken in the coming fiscal.

In its budget for fiscal 2017-’18, the MCG had pledged funds totalling ₹2,025 crore, way higher than ₹1,836 crore which it pledged in the budget for fiscal 2016-’17.

Of the ₹2,025 crore pledged in its last budget, the MCG had allocated around ₹900 crore for development projects.

According to municipal officials, it is likely that the total budgetary allocation for fiscal 2018-’19 will be in excess of ₹2,500 crore and the allocation for development projects could be around ₹1,200 crore.

Allaying concerns over shortage of funds, MCG officials pointed to the property tax collection worth ₹472 crore, its highest annual collection.

The MCG also generated revenue from issuing licences to meat shops, birth and death certificates, building plans, completion certificates to developers and the revenue generated in exchange for facilities accorded to residents.