Open House: How should Chandigarh fix poor fund utilisation and protect essential services after cut in budget?

Prioritise essential services

Chandigarh must prioritise essential services through outcome-based budgeting, strict monitoring and transparent spending. Non-essential projects should be deferred, while focus should be on water supply, education and research, sanitation, health and road infrastructure. Public-private partnerships, digital audits and citizen feedback can improve efficiency, reduce waste and ensure every rupee delivers maximum public benefit. Periodic review of proper utilisation of allocated funds be made available on public domain.

Dr Parvinder Singh, Mohali

Non-critical projects can be deferred

The city must fix fund utilisation through prioritisation, transparency and accountability. With a reduced budget, spending should first protect essential services like power, water, drainage, healthcare and emergency response while deferring non-critical projects. Every department must submit outcome-based spending plans, with quarterly public disclosures on fund use and service performance. Inter-departmental coordination can avoid duplication and save costs. Technology-driven monitoring, third-party audits and time-bound responsibility for failures are essential to plug leakages. Most importantly, citizens must see value for money. Efficient governance, not higher spending, is the real solution. Even with fewer funds, disciplined planning and strict accountability can ensure uninterrupted essential services and build public trust.

Vineet Gandhi, Manimajra

Identify bottlenecks in fund utilisation

Chandigarh is facing a tough time with a reduction in budget allocation, which is impacting essential services. The reduction is largely due to poor fund utilisation, red tape and lack of will to spend allocated funds effectively. The Chandigarh Administration needs to prioritise projects, streamline processes and improve transparency. Identify bottlenecks in fund utilisation and take corrective measures. This could involve simplifying approval processes, increasing transparency and ensuring timely release of funds. Focus on essential services like healthcare, education, and infrastructure.

Capt Amar Jeet (retd), Kharar

Don’t waste funds on inaugurations

Reduction in Chandigarh’s budget is a matter of concern, although deficit was Rs 437.66 crore as found from details. Focus should be on allocating funds to critical sectors like healthcare, education and sanitation to ensure uninterrupted services. Improve property tax collection, increase revenue from municipal services and explore new revenue streams. Reduce non-critical expenditure, like administrative costs. Adopt efficient waste management practices, reduce energy consumption and streamline processes. Avoid wastage of funds on inauguration of small parks, toilets, etc. Sustained efforts are needed to ensure that essential services aren’t compromised.

Kirpal Singh, Chandigarh

Use traffic fine for upkeep of roads

Even as more budget was allocated last year, city roads and streetlights were in no better condition. The UT Administration and Municipal Corporation have to priortise the services based on urgency.

Wg Cdr JS Minhas (retd), Mohali

Need better fund management

The UT Administration should focus on allocating funds to critical sectors like healthcare, education and public transportation, streamline administrative processes and reducing non-essential expenditures. It should also look into public-private partnerships or the Central Government grants to supplement the budget. The administration should improve property tax collection and explore new revenue streams, such as tourism or IT sector.

VK Tangri, Mohali

Seek funds from NGOs, affluent people

It is sad to see that a city like Chandigarh has been allocated with lesser funds. However, the necessary works are to be undertaken — some of them on priority. The administration may call for funds from the NGOs and affluent people in the city. The MC can ask resident welfare societies to maintain parks and toilets with the donated funds. The names of the donors be displayed at the prominent place of the parks. Similarly benches, tables, lights, gyms, etc., may be installed.

NPS Sohal, Chandigarh

UT has failed to use funds optimally

Over the years, the Chandigarh Administration has failed to ensure optimum utilisation of funds. It should focus on improving public transport system, waste management, free parking facilities, night shelters and better health services. The list is endless. The administration should welcome suggestions from all sides.

Anju Mohan, Panchkula

Spend on public amenities

The budget is allocated after a lot of brainstorming, clearly defining the heads where expenditure is to be made. Since the Centre has noticed that the funds are not being used properly, there has been a reduction in the budget. It clearly shows that the administration is responsible for under-utilising or not utilising it at all. The UT Administration needs to keep residents and their welfare in focus while allocating funds under different heads.

Garv Bhupesh Verma, Panchkula

Form expert panel on budget utilisation

Find and create new revenue streams to deal with budget cuts. The UT Administration should form a team of experts to review the budget utilisation. This team could include both current and retired architects, civil servants and PWD engineers, who live in the city. The administration should also look for new ways to generate income locally. For example, building a biogas plant at the Dadumajra garbage dump and supplying gas to government canteens could increase revenue. Using cow dung for making manure could also bring in money. Renting out government school buildings to private coaching centres could help ease fund crunch.

Sunny Dhaliwal, Chandigarh

Ensure quarterly monitoring of works

During FY 2024–25, the Chandigarh Administration was entrusted with a generous budget of Rs 6,513.62 crore — Rs 5,858.62 crore under the revenue head and Rs 655 crore earmarked exclusively for capital development and infrastructure. What followed is both shocking and painful. While revenue expenditure crossed estimates and touched Rs 6,396 crore, actual development work crawled. Only Rs 472 crore was spent on capital projects, leaving a glaring Rs 183 crore unutilised and finally surrendered — as if Chandigarh had no roads to repair, no infrastructure to build, no future to plan. This administrative lapse could not be ignored. The city now pays for indecision with fewer resources and stalled growth.

Ravinder Nath

Go for regular audits, monitoring

The Chandigarh Administration should ensure proper utilisation of already allocated funds. Regular audits and strict monitoring of departments should be conducted to avoid wastage. Essential services like healthcare, education, water supply and sanitation must be given priority. Unnecessary expenditure on events, advertisements and beautification projects should be reduced. Delayed projects should be reviewed and completed on time to prevent cost overruns. Use of digital systems for transparent budgeting. Public-private partnerships can be encouraged to support infrastructure and services. The administration can also take help from volunteers and resident welfare associations for cleanliness drives and other community services to reduce expenses.

Karman, Chandigarh

Streamline approvals to curb delays

The Chandigarh Administration can address poor fund utilisation by prioritising digital monitoring via GIS mapping and real-time dashboards to track quarterly spending, ensuring 90% utilisation through strict audits and incentives for efficient departments. To protect essential services, like healthcare (Rs 955 crore allocation) and civic infrastructure, reallocate savings from energy sector privatisation to high-priority areas such as polyclinic upgrades and water supply. Revenue collection can be enhanced through optimised property tax and user charges for sanitation. Streamline project approvals with feasibility studies to curb delays, partner with MC’s Rs 850 crore GIA for development and launch public campaigns for compliance — restoring fiscal health swiftly.

Gaganpreet Singh, Mohali

Improve project planning, execution

The reduction in Chandigarh’s allocation in the Union Budget 2026-27 again exposes a deeper problem: chronic under-utilisation of funds and weak spending efficiency. Rather than merely seeking higher allocations each year, the UT Administration must urgently improve planning, timely tendering and project execution to fully absorb available resources. Priority must be given to safeguarding essential services such as health, education, public transport and policing, especially when health has already seen a cut despite rising demand. Capital works should focus on completing stalled projects instead of scattering funds across new announcements. At a time of fiscal tightening, Chandigarh’s credibility will depend not on the size of allocations, but on its ability to spend prudently, transparently and in line with citizens’ core needs.

SANJAY CHOPRA, MOHALI

Ensure better use of funds

The cut in Chandigarh’s budget is a serious issue, but the bigger problem is poor utilisation of existing funds. Every year, crores remain unspent while citizens suffer due to waterlogging, damaged roads, sanitation issues and staff shortages. Instead of blaming budget cuts, the administration must improve on planning and spending. Money should be released on time, projects must have clear deadlines and departments that fail to use funds should be held accountable. Essential services like health, cleanliness, drainage and road repair must be protected at all costs. Regular reviews, faster approvals and coordination between departments can prevent delays. Fund usage should be made public so that taxpayers know where their money goes.

Dr Kumud Sachdeva, Dera Bassi

Reduce non-essential expenditure

Unnecessary expenditure should be checked and allocation of budget should be made according to development works carried out previously. The mayor and councillors should cut down on non-essential expenses. Due to the unnecessary expenditure, civic works and important projects suffer.

Charu Malhotra, Mohali

Earn revenue from advertisements

Vacant walls, public transport and roundabouts can be used for advertisements to earn revenue. The main areas in the city can be used for installing advertisement hoardings. Horticulture waste can be used to prepare manure to earn money. Stray dogs can be put up for adoption, as the city is bestowed with ample pet lovers. GPA (General power of attorney) holders of housing board flats should be allowed to register their properties in their names.

Abhilasha Gupta, Mohali

Fix poor fund utilisation

The Chandigarh Administration should fix poor fund utilisation and protect essential services after a cut in the budget. Use of green products should be promoted as recycled items can help reduce costs. The high-efficiency appliances (solar chargers, LED lights) and water-saving technologies should be used in public buildings to reduce consumption.

Adish Sood, Amloh

Budget cut to impact development works

The reduction in budget will directly impact development works in the city. The thrust should be on reducing carbon footprint, enhancing solar energy usage, efficient public transport. Besides, the authorities should ensure better policing to safeguard residents, effective cyber security, curb digital terrorism, better waste management along with its disposal and clearing tonnes of garbage that has become a nuisance for residents.

Dr Rajeev Kumar, Chandigarh

Maintain existing infrastructure

In view of reduction in the budget, authorities should focus on maintenance of current infrastructure rather than building new projects. Attention should be paid to necessary needs of public like maintaining infrastructure, cleanliness, hygiene, water and electricity.

Arshinder Singh Malhotra, Mohali

Prioritise ongoing projects

With the reduced funding from the Centre, the UT Administration should prioritise ongoing projects like 24/7 water supply, road repairs, Dadumajra waste management and basic public services. The Municipal Corporation should set a goal to generate Rs 450 crore from its own resources, including property tax collection, water charges and parking fee. It should reduce the non-essential expenditure and tighten control over revenue expenditure.

Sucha Singh Sagar Bullowal

Hold carnivals, run state lottery

As the budget has cut the financial sheet of Chandigarh, the authorities now have to plan its expenses prudentially to cover itself without contracting its expanding feet. To augment the finances the administration has to think of some other sources, such as holding carnivals, mobilising funds from well-to-do people of the city. Some states are running state lotteries — though a kind of gambling, it could be adopted for the benefit of citizens — to make extra money. The most important is to plug the wastage and luxury expenses.

Sqn Ldr Manjit Singh Johar (retd), Chandigarh

Collect tax from major defaulters

The primary reduction in the budgetary amount is attributed to a structural change in the energy sector following its privatisation, whereas despite an overall cut, certain sectors saw increased support, like education and Municipal Corporation. However, to recover from its budget deficit, UT should aggressively pursue tax collection, particularly from major defaulters like Punjab, Haryana and the Central government, along with enhancing its own-source revenue, such as from advertisement fees and electricity cess, for revenue generation.

Vaibhav Goyal, Chandigarh

Cut in budget to hit projects

Chandigarh MP Manish Tewari had highlighted that for 2025-26, the UT budget allocation was Rs 6,187 crore, but revised estimates showed that only Rs 5,556 crore was actually spent. This resulted in a surrender of over Rs 630 crore, leading to a reduced allocation of Rs 5,720 crore in the subsequent budget, which impacts urban infrastructure, health sectors and public.

Col Balbir

COMMENT

Spend better, argue stronger

Chandigarh’s Rs 437.66 crore cut in the Union Budget for 2026-27 did not happen overnight, nor is it entirely surprising. It is the outcome of two failures colliding — weak fund utilisation at the local level and a harder fiscal line taken by the Centre. Year after year, the Chandigarh Administration seeks large hikes, but its track record of spending what it already gets remains uneven. Underspending, especially on capital works, sends a clear signal to North Block: money sanctioned is not translating into assets on the ground. That weakens the city’s case far more than political protests ever can. When roads, hospitals and schools are delayed, the Centre sees inefficiency, not unmet need. Capital expenditure has been trimmed sharply, which means slower upgrades to infrastructure and public facilities. Essential services may be protected for now, but without timely investment, quality will inevitably suffer. The increased grant to the MC is a relief, but it cannot compensate for reduced development spending at the UT level. Responsibility lies first with the administration. It must fix project planning, speed up clearances and ensure time-bound execution. Transparent dashboards, quarterly reviews and accountability of departments are essential. The way forward is clear: fully utilise funds in 2026–27, show visible outcomes by mid-year and build a data-backed case for additional allocations in the revised estimates. Chandigarh will get more money only when it proves it can spend better.

Question for next week

How should Chandigarh curb the issue of over two lakh uninsured vehicles on its roads?

Suggestions in not more than 150 words can be sent to openhouse@tribunemail.com by Thursday (February 12).