Revenue static, challenges galore for MC

With revenue barely covering committed liabilities, MC is set to struggle with no funds left for development work in the city

- HT correspondent

CHANDIGARH: The financially strained Chandigarh Municipal Corporation (MC), led by BJP mayor Harpreet Kaur Babla, on Monday passed a ₹2,114-crore budget for the financial year 2025-26. However, with revenue barely covering committed liabilities, the civic body is set to struggle with no funds left for development work in the city.

Hoping for additional funds from the Centre under the 4th Delhi Finance Commission (DFC) recommendations, the MC had sought ₹1,704 crore in grants, ₹9 lakh as electricity duty, and projected ₹410 crore from its own sources. However, the UT administration has only allocated ₹625 crore from the central budget, announced on February 1, leaving the civic body in a dire financial situation.

"Even if the MC manages to generate 100% of its projected revenue (₹410 crore), the total funds will reach only ₹1,035 crore. With annual revenue expenditure at around ₹1,197 crore-covering salaries, pensions, and utility bills-the MC will have no funds for development works, despite a budgetary allocation of ₹467 crore for capital projects," said Congress councillor Gurpreet Singh Gabi.