Respite for MC: Admn releases Rs 66-cr grant

Tribune News Service

Chandigarh, July 19

In a respite to the cash-starved Municipal Corporation, the Finance Department, UT, on Thursday released Rs 66 crore, the second instalment of the grant-in-aid to the civic body.

The funds have been released a day after a delegation of all-party councillors, led by Mayor Davesh Moudgil, took up the matter with UT Administrator VP Singh Badnore. 

The delegation had sought a special financial assistance of Rs 150 crore for the MC to help it execute emergent works like re-carpeting of roads and construction of community centres.

Sources said with the release of the grant, the MC would be able to meet its basic expenses like salaries to employees 

and paying contractors for maintenance works. 

Sources said while releasing the instalment, the UT Administration asked the civic body to mobilise resources for self-sustenance. 

Facing worst-ever financial crisis, the MC was eagerly waiting for funds. The fiscal health of the civic body had been deteriorating over the past six months. Once cash-rich, the MC was now finding it difficult even to foot the salary bill. 

An MC official said while the expenditure of the civic body had been increasing, its resources remained the same. Presently, the MC has to spend Rs 35 crore to Rs 40 crore on the salary of its employees while Rs 10 crore to Rs 15 crore are spent on other day-to-day expenses.