Chandigarh MC only given depts with high costs, low earning: Mayor

The UT administration has kept all revenue-generating departments with it and handed over those with low earnings and high maintenance to the Municipal Corporation (MC), Mayor Harpreet Kaur Babla said amid the civic body’s widening rift with the administration over funds.

While talking to The Tribune, Babla said various departments of UT administration like the Engineering Department, Medical Officer of Health, Fire and Emergency Wing, along with their staff strength have over the course of time been transferred to the MC since its creation on May 24, 1994.

The then staff of Notified Area Committee, Mani Majra, along with their respective works also came within the civic body’s ambit. The Corporation, she noted, bears all the expenses and earns no revenue from it.

That’s the pattern that the civic body has been stuck with, according to the Mayor. The expenditure has grown exponentially but there are very few sources of income to offset the costs — property tax and water bills being the only significant contributors. The rest, she said, were just “pittance”.

As such, the MC remains dependent on financial assistance from the Municipal UT administration through grant in aid.

“If the administration accepts the recommendations of the 4th Delhi Finance Commission, the civic body will not face any financial problem in future.” Bablda said, adding that has she raised the issue of the cash-crunch with both Union Home Minister Amit Shah and UT Administrator Gulab Chand Kataria.

Made in August 2014, the 4th Delhi Finance Commission recommendations include providing the civic body with 30% of the proceeds of collection from the value added tax, the local excise duties, 100% of the collections of motor vehicle tax together with motor vehicle registration charge and diverse from the permit fees, 25% of tax on sales or purchase or consignment of goods, 100% of Service Tax collections and stamp duties mentioned in the Union List.

The recommendations, which are in accordance with the provisions of the Punjab Municipal Act, 1976, were adopted by the civic body’s General House. The MC then and requested the UT administration to accept them.

The civic body has sent multiple requests for the implementation of the recommendations but the matter is pending between the UT administration and the Union Ministry of Home Affairs.