Ludhiana: The municipal corporation is racing to plug a significant fiscal deficit as it prepares to table its next annual budget, with current revenue collections falling nearly Rs 238 crore short of the Rs 1,035 crore target.With the financial year-end looming, the civic body has recovered only Rs 797 crore as of March 5. The shortfall has left the corporation heavily reliant on federal grants and struggling to attract contractors for local infrastructure projects, as the city’s own “MC funds” are seen as increasingly unreliable. While property tax collections remain a rare bright spot for the council, almost every other major revenue stream is lagging behind projections.A deepening dependenceThe fiscal squeeze has shifted the city’s operational weight onto the Indian government. Vital urban works are now almost exclusively funded through federal schemes such as the Swachh Bharat Mission and the National Clean Air Programme. The shortage of liquid “MC funds” has created a secondary crisis in the construction sector. Sources within the civic body admit that when tenders are floated using the corporation’s own dwindling reserves, private contractors are refusing to bid, fearing payment delays or defaults.Stagnation in Water and LicensingDespite efforts to increase self-sufficiency, water supply recoveries have actually regressed. The 37.81 crore rupees collected this year is a decline from the 38.55 crore rupees recovered during the same period last year. Other minor but essential revenue streams, such as license fees, have also stalled, bringing in only 89 lakh rupees against a 1.50 crore rupee target.Official ResponseMunicipal commissioner Neeru Katyal Gupta said the administration was now in a “priority” recovery phase to bridge the gap before the new budget is finalised. “The recovery of pending dues is our priority, and we are focusing on everything, including property tax,” Gupta said. She confirmed that directives have been issued to all department heads to ramp up enforcement in their respective branches.
