UT rejects MC budget, terms it unrealistic

Ramkrishan Upadhyay
Tribune News Service
Chandigarh, May 26

In an unprecedented move, the Chandigarh Administration has rejected the budget proposal approved by the Chandigarh Municipal Corporation for 2019-2020, terming it unrealistic. It has directed the civic body to reconsider it at its next House meeting.

Sources said this was the first time that the Administration had returned the budget proposal to the MC. Now, the MC has decided to place a letter received from the Administration at a House meeting to be held on May 30.

At a meeting held in February, the MC had approved a budget of around Rs 1,260 crore. Of the total budget, the civic body had demanded Rs 1,026 crore as grant-in-aid from the Chandigarh Administration based on the recommendations of the 4th Finance Commission.

The MC had kept the target for income generation through own resources at Rs 276 crore. While the MC passed a Rs 1,260-crore budget, the Chandigarh Administration had approved only Rs 375 crore as grant-in-aid for the current financial year.

The Administration has questioned the MC’s move saying that the recommendations of the 4th Finance Commission are yet to approved by the Centre. In such a situation, the budget could not be approved.