Challenges loom as MC plans Rs 990-cr budget for 2024-25 : The Tribune India

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Challenges loom as MC plans Rs 990-cr budget for 2024-25

MC struggles to meet income targets for current fiscal, to end on March 31

Challenges loom as MC plans Rs 990-cr budget for 2024-25


Tribune News Service

Harshraj Singh

Ludhiana, February 22

In the absence of the Municipal Corporation (MC) General House due to a delay in the civic body elections, MC officials are preparing to present an estimated budget for the upcoming financial year of 2024-25. Work is underway to finalise the estimated budget, which could be around Rs 990 crore for the new fiscal year, according to sources. The budget meeting is likely to be held soon.

Budget meeting likely to be held soon

Work is underway to finalise the estimated budget for the next financial year 2024-25, which could be around Rs 990 crore for the new fiscal year, according to sources. The civic body’s budget meeting is likely to be held soon. According to an official, the finalised estimated budget will be presented in a meeting of the technical advisory committee.

Notably, the MC’s revised budget income for 2023-24 is around Rs 937.74 crore but it has been struggling to meet revenue targets. Between April 1 and December 31, 2023, the MC had collected Rs 521.51 crore in revenue while it expects to generate an additional Rs 416.23 crore in revenue between the last quarter from January 1 to March 31, 2024.

According to information, the MC plans to generate income of Rs 140 crore from property tax in the new financial year (from April 1, 2024, to March 31, 2025), while it was expecting to generate Rs 130 crore in property tax during the ongoing financial year till March 31, 2024. The civic body is planning to generate Rs 60 crore in water supply and sewer charges in the upcoming financial year. However, it is struggling to meet the target for the current fiscal year. Besides, the MC plans to generate a maximum income of Rs 625 crore under the head of the Punjab Municipal Fund during 2024-25.

Besides, the MC plans to generate only Rs 12.50 crore from advertisements in the new financial year. Against the revenue target of Rs 10.50 crore during 2023-24, the civic body had generated only Rs 6.40 crore between April 1 and December 31, 2023, and it expects to generate Rs 4.10 crore more between January 1 and March 31, 2024.

The corporation is also struggling to meet the revenue target from change of land use (CLU) charges for the current financial year. Against the revenue target of Rs 12 crore for 2023-24, the MC had collected only Rs 2,000 between April 1 and December 31, 2023, but it still expects to generate Rs 11.99 crore from CLU in the ongoing quarter till March 31, 2024. For 2024-25, the MC plans to generate Rs 15 crore under the revenue head of the CLU.

During the next financial year, the MC plans to spend Rs 9 crore on solid waste management, Rs 18 crore on diesel purchase, Rs 22 crore on sewerage, Rs 5.5 crore on parks and gardens, Rs 70 crore on street cement concrete flooring and Rs 10 crore on bitumen roads. However, financial decisions on revenue and expenditure will be made in the upcoming budget meeting.

According to an official, the finalised estimated budget will be presented in a meeting of the technical advisory committee.

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