Chandigarh MC spent beyond its earnings during two fiscals: Audit
The Municipal Corporation spent more than what it earned during the year 2022-23 and 2023-24. As the gap between expenditure and revenue continued to increase, the civic body is now left with no money for carrying out any maintenance or development work.
The MC had earned profit in the fiscal 2021-22, as per the figures provided to the Audit Department. The civic body had generated Rs 823 crore, including grant-in-aid and revenue from internal sources. During the period, the total expenditure was recorded at Rs 760 crore, leaving the civic body with the profit of Rs 62.18 crore.
The financial situation of the civic body started declining thereafter.
As per the audit report, the MC had generated Rs 872 crore in the financial year 2022- 2023 — Rs 550 crore as grant-in-aid and Rs 322 crore as revenue from internal sources, while it spent Rs 943 crore, incurring a loss of Rs 71 crore.
Likewise, in the year 2023 -24, the MC earned Rs 881 crore, including Rs 560 crore as grant-in-aid and Rs 321 crore from internal resources, and spent Rs 991.15 crore during the period, registering a loss of Rs 110.15 crore.
The audit report mentioned that the MC used the balance and the reserve fund to incur expenditure beyond its receipts during the two fiscals.
The committed liability of the MC has also doubled in the last six years. The MC had committed liabilities of Rs 41.25 crore every month in 2018, which include salary, wages, outsource salary, power, water and petrol. Now, the committed liability has increased to Rs 75 crore a month.
Sources in the MC said if the civic body failed to get financial assistance in the near future, it would not be possible for it to continue undertaking ongoing projects or start new projects in the year 2025–26. The MC is presently facing the worst financial crisis as it has stopped releasing payments, except for salary, pension and the bills for works of emergent nature. No road recarpeting is being taken up and no fund is being released to the RWAs for the maintenance of parks.
