Chandigarh administration wants to reassess MC’s finances, asks for revenue receipts

Chandigarh: The finance department of the UT administration wants to reassess the finances of the municipal corporation (MC). For this, it has asked the corporation to provide details of revenue receipts for the current financial year. This request comes as the MC has been seeking additional funds amid financial crisis, and there is no proposal for an immediate release of extra funds from either the central government or the UT administration.
Revenue receipts are the only source of the MC's own income, besides the earmarked grant-in-aid (GIA) by the UT administration. The finance department aims to scrutinise the entire income segment of the MC afresh, considering the MC's overall expenditure. The MC has raised a fresh financial demand of around Rs 540 crore to the UT administration.
The MC has already started receiving the dedicated GIA amount for the current financial year. Sources in the Chandigarh administration said there is no indication of any additional funds from the central government. Any potential additional funding can be expected in the Revised Estimate (RE) only after the first half of the current financial year, which is after September.
"With the increased property tax in both residential and commercial segments, the MC will see a significant rise in revenue from property taxes. Also, the authority has been implementing various measures to boost its revenue resources to ensure smooth operations. However, since they are requesting additional funds, we want to reassess the entire financial scenario, particularly the income aspect. Therefore, the concerned employees of the MC have been asked to provide detailed information on revenue receipts and their expected expenditures," sources in the UT administration said.
The UT administration has no immediate funds to provide additional financial support and has received limited funds based on its key requirements, necessitating judicious and responsible use.
"Since the department of expenditure of the ministry of finance of the central government monitors every single penny, and every financial aspect of the UT is directly connected with the annual Budget, there is no commitment from the ministry for any immediate additional financial grant either to the UT or the MC. Although the UT will raise its demand for additional finances based on works and requirements to the ministry, this will all happen after Sep. Whether Chandigarh will receive any additional grant will depend on the situation at that time," a senior officer of the UT administration told TOI.
MHA meeting
The Union ministry of home affairs (MHA) recently spoke to the officials concerned of the Chandigarh administration to get the details of the 4th Delhi Finance Commission Report and allocation of funds to the MC accordingly. "It was a verbal discussion. The officials of the UT administration explained everything about the 4th DFC case to the MHA, detailing the financial outcome and related financial aspects. It has also been briefed to them that the matter is still with the central govt for their consideration and action," an official told TOI.
GIA falls short of MC expectations
The Chandigarh administration has earmarked Rs 625 crore Grant-in-Aid for the MC in the current financial year. Of this, the administration released the first-quarter grant of Rs 156.25 crore last April. However, the disbursed amount is less compared to the demand of the MC. The civic body had sought Rs 200-250 crore for the first quarter, keeping the current financial crises in mind.