The Chandigarh Municipal Corporation, which recently faced a severe financial constraint with only Rs 5 lakh remaining in its fixed deposit (FD), got major respite when the UT Administration approved a Rs 50 crore grant-in-aid (GIA) for August. This timely investment would enable the cash-strapped firm to clear outstanding debts for contractors and pay delayed wages to outsourced personnel.
The corporation, which has a monthly expenditure of Rs 58 crore, had been struggling to meet its financial obligations, delaying payments and halting new tenders except for essential ones. like monsoon preparedness. The administration has urged the corporation to submit all pending utilisation certificates (UCs) promptly to ensure the release of further funds for the ongoing fiscal year.
Despite receiving Rs 147 crore in the first quarter under the Union Budget, the corporation has continued to rely heavily on the GIA, as its revenue from property tax, water bills, and paid parking lots remains insufficient. The MC has also been requesting the administration to transfer the Registration and Licensing Authority and allocate a share of the road tax, but these demands have yet to be met.
