Sigh of relief for fund-starved Chandigarh MC as UT administrator assures aid

An all-councillor meeting with Punjab governor and UT administrator Gulab Chand Kataria on Friday bore fruit as he assured financial aid to the cash-strapped Chandigarh municipal corporation (MC), providing much-needed hope amid its ongoing fiscal crisis.

Although a specific amount was not announced, Kataria confirmed that surplus funds from UT’s annual budget will be transferred to the civic body to help meet its immediate liabilities.

The administration is also working on securing an additional grant from the central government, with the aim to provide further financial support by March 15.

Led by mayor Harpreet Kaur Babla, the councillors highlighted MC’s financial challenges during the meeting, with Babla stressing MC’s critical role in maintaining city infrastructure and delivering essential public services.

“MC is playing a crucial role in maintaining and developing the city’s infrastructure, ensuring sanitation and providing essential public services on a no-profit, no-loss basis. We are making efforts to enhance our financial position. To optimise resources, MC has implemented several cost-cutting measures, including removal of 200 outsourced employees, reduction in the number of vehicles hired for officials and lowering budget of public events,” said Babla.

Mayor hands over ‘wishlist’

Urging the administrator for immediate financial assistance, the mayor also presented a wishlist, including a reimbursement of ₹160 crore spent on paying pensions of transferred employees and ₹40 crore per year for future pension liabilities.

She also requested the administrator to implement the 4th Delhi Finance Commission (DFC) recommendations for fund devolution to civic body and release ₹170 crore as additional funds for the financial year 2024-25 to meet liabilities and sustain municipal services.

She assured the administrator that MC had implemented several cost-cutting and revenue-enhancing measures to optimise its resources.

In response, Kataria assured the administration’s full support and instructed relevant officials to convene an urgent meeting to discuss MC’s financial status in detail for an early resolution, the mayor said.

Congress, AAP councillors present demands too

Besides BJP mayor Babla, one councillor each from the Congress and AAP were given chance to present their demands too.

Congress councillor Gurpreet Gabi sought conversion of leasehold property to freehold to revenue generation through their sale. She also requested dedicated grant for maintenance of roads and additional funds for clearing contractors’ dues.

Meanwhile, AAP councillor Yogesh Dhinga said maximum works in the city were carried out by MC, but most of the profit-making departments were with the UT administration. MC’s ongoing shortage of funds had left development work stalled across the city, he added.