Chandigarh Municipal Corporation gets boost, UT sanctions its final grant of Rs 125 crore

Sandeep Rana

Tribune News Service

Chandigarh, January 10

The final grant-in-aid (GIA) of Rs 125 crore for the cash-starved Municipal Corporation for the current fiscal has been sanctioned by the Finance Department of the UT Administration.

With this, the civic body has got its entire approved GIA of Rs500 crore. It has already got a total of Rs375 crore in the first three quarters.

In view of the rising Covid cases, there was some doubt that the GIA of the corporation may see some cut, but that has not happened. An additional Rs2 crore under the Swachh Bharat Mission was already received at the start of this financial year.

“The Finance Department has sanctioned our fourth quarter grant of Rs125 crore. In two days, we will receive it,” said an MC officer.

The amount will mainly be used in paying salaries and other unavoidable expenses in January, February and March. The civic body spends about Rs45 crore per month on salaries and other unavoidable expenses.

An official said some amount would be left for development works. With not enough funds in its kitty, new development projects or renovation of the community centre and public toilets may get hit.

However, the official said there was no need to worry as for the development of roads and villages, additional funds had already been sanctioned. For implementing the 24X7 water supply project, Chandigarh Smart City Limited (CSCL) had about Rs402 crore loan from French firm Agence Française de Développement (AFD) and Rs96 crore grant from the European Union.

The corporation had passed a Rs670-crore deficit Budget for the 2021-22 fiscal in anticipation of getting the GIA as per the Fourth Delhi Finance Commission recommendations. However, it could not get its long-pending demand fulfilled.

To be used in paying salaries

The amount will mainly be used in paying salaries and other unavoidable expenses in January, February and March. The civic body spends about Rs45 crore per month on salaries and other unavoidable expenses.