Take us out of the red, Municipal Corporation writes to VP Singh Badnore

CHANDIGARH: Passing through acute financial crisis, the municipal corporation has written to Chandigarh administrator VP Singh Badnore to help them. Mentioning the works that have come to a standstill and other problems, the civic body, in a five-page letter, has apprised the administrator of the recommendations of the third and the fourth Delhi Finance Commission and requested to implement them.


The letter said with the creation of MC, various departments of the Chandigarh administration, like engineering, medical officer of health, fire and emergency wing, primary health, primary education, and their staff were transferred to it from time to time. The existing staff of Notified Area Committee, Manimajra, along with their respective works also came within the ambit of MC, it said, adding that the engineering department in itself comprised public health, building and roads, horticulture and electrical wing.

“Besides this, majority of functions transferred by the Chandigarh administration to the MC by virtue of an Act are related to public utility services, which contribute negligibly towards revenue generation. Consequently, the corporation largely remains dependent on financial assistance provided by the UT in the shape of grant-in-aid (GIA). From the perusal of the past years’ data as provided hereunder, it is clear that there is a wide gap between grant-in-aid received and expenditure incurred by MC on the various developmental works apart from establishment expenses of around 4,500 employees, including salaries, wages to regular/work charged and other contractual/outsourced staff. Besides, there were other committed expenditure like electricity, water charges and telephone, among others, and a recurring liability of pension and other benefits,” the letter said.

Contractors not paid: MC

The MC said at present due to non-receipt of share as recommended under the third and the fourth Delhi Finance Commission, no payment has been made to the contractors and they have stopped the ongoing projects.

‘Release grant-in-aid’

The MC has requested to release the grant-in-aid as per the recommendations of the third and the fourth Delhi Finance Commission. The MC said as per the third Delhi Finance Commission, 17.5% of the total revenue of the UT should go to the civic body, which is Rs 700 crore. As per the fourth Delhi Finance Commission, 30% of the total receipt should come to MC, which is Rs 1,200 crore. But at present, it was getting Rs 269.26 crore. The MC has written to the administrator that since Rs 40 crore to Rs 45 crore were spent on salaries and other liabilities every month, they were left with only Rs 100 crore, whichincludethefirst grant-inaid instalment of Rs 66 crore. The civic body receives four instalments of grant-in-aid .