Cash-strapped MC seeks Rs 169 crore from UT Admn

Sandeep Rana

Tribune News Service

Chandigarh, September 13

The cash-starved Municipal Corporation has sought additional funds of Rs 169 crore from the UT Administration.

The civic body has fallen short of Rs 30 crore even to foot the salary bill and establishment expenses this financial year let alone undertaking development works.

Though the MC has sought additional funds primarily for road recarpeting and other development funds, which have been hit due to fund crunch for two years, these will also be utilised to pay salaries and meet establishment expenses.

“We have written to the Administration and sought an additional budget of Rs 169 crore. If we calculate the salary and establishment expenses for the remaining months of the financial year, we will be needing at least Rs 30 crore more. For road recarpeting and other development works too, we need funds,” MC Commissioner Kamal Kishor Yadav told Chandigarh Tribune.

The Administration every year releases grant to the MC on a quarterly basis, which is Rs 67.25 crore this time. The civic body had earlier written to the Administration to release the entire grant of Rs 269 crore in one go. However, the funds for the first two quarters were released separately by the Administration while the amount for the last two quarters was released in one go recently.

The grant-in-aid provided to the civic body by the Centre is too less as the MC had passed a budget of Rs 910.76 crore for the present fiscal. The corporation generates around Rs 150 crore annually.

A total of around Rs 55 crore is spent on paying salaries and establishment expenses every month.

“The financial management of the MC is messy. Secondly, the BJP-led Centre and the Administration have failed to provide funds required to run the corporation,” said Devinder Singh Babla, Leader of Opposition.