Civic body gets Rs 625 cr grant-in-aid
The UT Administration has allocated Rs 625 crore as grant-in-aid to the Municipal Corporation (MC) for the financial year 2025-26. While this marks a 12% hike from last year’s Rs 560 crore allocation, it remains significantly lower than the civic body’s demand of Rs 1,704 crore, which has been facing shortage of funds for the past several months.
The MC’s liabilities include salaries, pensions, electricity, and water expenses, which alone amount to approximately Rs 900 crore annually, leaving a substantial gap in funds for developmental projects.
For the previous fiscal year (2024-25), the MC had sought Rs 1,651.7 crore, but received only Rs 560 crore.
Facing shortage of funds, the MC had failed to carry out development works in the city for the past many months.
Welcoming the hike, Mayor Harpreet Kaur Babla said any increase was a good signal in view of the ongoing financial crunch. The BJP will push for additional revenue from the Centre, and a special grant of Rs 92 crore has already been announced this fiscal year, she added.
Babla also emphasised the need for the MC to enhance its internal revenue generation to bridge the shortfall and ensure the resumption of key civic projects in the city.
