House okays Rs 2,114 cr outlay for next fiscal

The Municipal Corporation (MC) today passed Rs 2,114 crore budget for the financial year 2025-26. The civic body faces a significant financial challenge with the UT Administration allocating only Rs 625 crore to it from the Central Budget announced on February 1.

With the hope of getting additional funds from the Centre, as recommended by the 4th Delhi Finance Commission (DFC), the MC budget lists Rs 1,704 crore in grants expected from the Centre, Rs 9 lakh from electricity duty, and Rs 410 crore projected from the internal revenue sources such as property tax and water bills.

Highlighting her efforts to address the financial crisis, BJP Mayor Harpreet Kaur Babla said, “I have initiated talks to ensure that the MC gets its share under the DFC recommendations. Additional revenue plans include auctioning residential land in Mani Majra and cutting down on expenses.” She said a meeting with UT Administrator Gulab Chand Kataria had been scheduled for February 21 to discuss the situation.

The proposed revenue of Rs 410 crore for 2025-26 marks a sharp increase from the revised estimate receipts of Rs 347 crore generated in 2024-25 against a target of Rs 633 crore.

Expressing concerns about the limited funds available for development, Congress councillor Gurpreet Singh Gabi said: “With an annual revenue expenditure of Rs 1,197 crore — covering salaries, pensions and utility bills — the MC will have no money left for capital or development works, despite allocating Rs 467 crore for such purposes in the budget.”

Councillor Saurabh Joshi from the BJP stressed the need for the UT Administration to provide MC with its share of taxes under the Punjab Municipal Corporation (Extended to Chandigarh) Act, 1994. These include stamp duty on property transactions, vehicle tax, electricity tax and entertainment tax.

To address the shortfall, the MC plans to auction land in Mani Majra and seek an additional grant from the Centre. The budget also includes provisions to cut expenses as part of cost-saving measures.

The MC had passed the Rs 2,325 crore budget for the 2024-25 fiscal but fell short of its revenue targets.