In a significant setback to the AAP-Congress alliance, UT Administrator Banwarilal Purohit today rejected the Municipal Corporation (MC) House resolution on providing free water supply and parking to Chandigarh residents. However, he decided that no extra parking fee would be levied on vehicles registered outside the tricity, opposing the MC’s earlier stance.
In March, the MC House saw the AAP-Congress alliance enact a free 20,000-litre water provision per household per month and free parking in market lots agenda. During the MC elections of 2021 when it became the largest single party, these were some of AAP’s main pledges. Also, free water was part of Congress’ manifestos during the last Lok Sabha elections as well.
Purohit cited several reasons for rejecting the resolution. He talked about the non-stop water supply project, which has resulted in taking a loan of over Rs 500 crore. He also pointed out that MC’s yearly expenditure has been on the rise, yet there has not been corresponding revenue. These financial constraints led to the decision to maintain the current charges for water and parking.
The MC receives a significant portion of its revenue from water tariffs and property taxes. In the 2023-24 fiscal year, the corporation collected Rs 176 crore from water bills alone. The MC also has a committed liability of approximately Rs 58 crore per month, covering regular expenses such as salaries, wages, pensions, electricity bills, and fuel costs. The annual expenditure on these liabilities amounts to about Rs 700 crore.
Despite the rejection of the resolution, Purohit approved the MC budget estimates for 2024-25. He noted that the MC had erred in passing the budget estimates during its meeting on March 6 this year. While he accepted the explanation provided by the Municipal Commissioner as a one-time measure, he issued directions for the MC to follow prescribed procedures as per the applicable provisions of the Municipal Act, rules, and bylaws in the future.
The rejection of the resolution has disappointed many residents who were looking forward to the financial relief promised by the AAP-Congress alliance. The decision comes amid ongoing debates about the financial management and sustainability of the MC’s services.
Local governments face the tough task of balancing those promises made ahead of the election to show fiscal discipline. Consequently, it is uncertain whether, when addressing these issues, the AAP-Congress coalition government will come up with new policies that can satisfy the people’s needs.
