Kataria denies grant to fund-starved Chandigarh civic body

In a setback to the Municipal Corporation (MC), UT Administrator Gulab Chand Kataria declined to release any special grant to the civic body during a review meeting held today.

The MC had requested a grant of Rs 200 crore to restart the stalled development projects, but the Administrator directed it to cut down on expenditure and find ways to increase revenue independently.

The meeting, which also included officials from other departments of the UT Administration, focused on addressing the MC’s budgetary concerns. However, instead of financial aid, the Administrator emphasised the need for the MC to “cut down on annual expenses, increase revenue from your own sources and strategise to improve fiscal health”.

Mayor Kuldeep Kumar had been requesting the UT Administration to release an immediate special grant of Rs 200 crore, but to no avail.

Also, the Administrator turned down the proposal of the Mayor to transfer the Registration and Licensing Authority (RLA) to the MC.

According to officials, in cities like Indore, the MC manages revenue-generating departments, such as electricity and transport, leading to a better fiscal management. They also pointed out that despite the Delhi Finance Commission’s recommendation to allocating annual electricity duty to the MC, no such payments have been made.

According to sources, newly appointed MC Commissioner Amit Kumar has been instructed to draft a comprehensive plan to enhance the corporation’s revenue streams. “This will involve recovering arrears from property tax and water bills, introducing a new advertisement policy and exploring other revenue sources, they added. Kataria also asked the MC Commissioner to report back with a strategy on how to generate revenue.

The sources further stated that UT Adviser Rajeev Verma questioned the MC’s spending patterns, particularly the hiring of contractual staff. “Why is the MC hiring so many contractual workers when regular posts remain vacant? Why is the corporation spending more on contractual staff salaries than on regular employees?” Verma reportedly said.

As per data, the MC had spent Rs 493 crore by September 30 this year. Of this, Rs 145 crore was allocated to regular staff salaries, while Rs 147 crore went toward wages for contractual employees. In contrast, only Rs 59 crore was spent on capital works during the first six months of the fiscal year.

Money matters

• Rs 200 crore grant sought by MC to restart stalled projects
• Rs 493 crore spent by the civic body till September 30 this year
• Rs 145 crore allocated for regular staff salaries
• Rs 147 crore for paying wages to contractual employees
• Rs 59 crore spent on capital works in first 6 months of fiscal year