With a little help from Governor Kataria, Chandigarh MC emerges from the red
After facing serious financial problems for more than five years, the Chandigarh Municipal Corporation (MC) has started moving towards financial stability. Support from the UT Administration, higher grants, better collection of its own revenue and tighter control on spending have helped the civic body improve its position. With a little help from Governor Kataria, Chandigarh MC emerges from the red The Tribune Special: Higher grants, better recovery of dues, controlled spending help corporation stabilise its finances During the first nine months of the current financial year (April to December 2025), the MC’s total receipts increased by over 28 per cent to Rs 879.16 crore. This improvement came mainly due to a 34 per cent rise in grant-in-aid, a 19 per cent increase in own receipts and a nearly 5 per cent cut in expenditure. MC Commissioner Amit Kumar recently informed Punjab Governor and UT Administrator Gulab Chand Kataria about the improved financial situation. Official figures show that an additional Rs 150 crore grant approved by the Administrator played an important role. With this, the grant-in-aid during the period rose to Rs 593.75 crore from Rs 487 crore in the same period last year. Steps were also taken to reduce avoidable expenses. About 450 posts were cut through manpower rationalisation, saving around Rs 25 crore every year. Changes in working arrangements saved another Rs 10 crore, while handling sanitary waste in-house reduced costs by nearly Rs 3 crore. The MC’s own receipts rose to Rs 285.41 crore, which was more than 23 per cent higher than Rs 231.74 crore collected during the same period last year. Property tax collections improved, with Rs 53.28 crore collected from commercial properties against a target of Rs 58 crore and Rs 31.06 crore from residential properties against a target of Rs 32 crore, after changes in tax rates. Expenditure during the nine-month period was limited to Rs 712.70 crore. Savings were made in salaries (Rs 23.23 crore), minor works (Rs 13.49 crore), electricity (Rs 5.55 crore) and fuel (Rs 1.49 crore). For the full year, both receipts and expenditure are expected to be around Rs 1,160 crore. Year-wise figures show the scale of improvement. Total receipts, including grants, which were Rs 768.11 crore in 2020-21, are expected to cross Rs 1,160 crore for the first time in 2025-26. The MC has already received Rs 750 crore as grant-in-aid till December 31 and expects another Rs 310 crore by the end of March. If this amount is received, total grant-in-aid will reach Rs 1,060 crore and, along with own receipts, total income may touch nearly Rs 1,470 crore this year. Unlike the previous financial year, when the MC had to take a Rs 56 crore loan to meet its expenses, it has not taken any bank overdraft so far this year. Total expenditure this year is expected to reach Rs 1,160 crore, which includes pending liabilities of Rs 188.75 crore from the previous year. Kataria said the aim was to make the MC financially independent by increasing income from its own sources, cutting avoidable spending and ensuring timely grants. He said there would be no shortage of funds for basic civic services and infrastructure. Mayor Harpreet Kaur Babla said the focus would remain on improving own revenue, reducing unnecessary expenditure and continuing support from the Chandigarh Administration. Chandigarh ranked second in the Super Swachh League 2024-25 of the Ministry of Housing and Urban Affairs and topped the State of India’s Environment 2025 green rankings with a score of 89.09.
