MC in fiscal crisis, stops payments

Ramkrishan Upadhyay

Tribune News Service

Chandigarh, April 15

The Municipal Corporation is facing a financial crisis and has stopped releasing all payments except those meant for salary, pension and important bills.

Sources said the situation had arisen as the MC was left with a bank balance of only Rs 22 crore. The MC has taken up the issue of grant-in-aid with the Administration, but has not got any response so far.

The MC has stopped payments of around Rs 36 crore to contractors for works carried out during the previous years. An MC official said due to paucity of funds, the officers had not allowed agenda related to developmental works to be placed at the House meeting, scheduled for Monday.

The sources said if steps were not taken immediately, it would become difficult for the MC to even pay the salary next month.

The MC has committed liabilities of around Rs 492 crore for the current financial year, which include salary, pension, daily wages, petrol payments and electricity and water bills, but  it will get only  Rs 438 crore  from all sources.

The  MC has no resources to  recover  the Rs 54-crore loss.    

The sources  said this was the first time that the  situation had  reached a point  where contractors had  also  stopped  many works.