Chandigarh: The Chandigarh administration has sanctioned a Rs 300 crore grant-in-aid (GiA) to the MC for the first quarter of the 2026-27 financial year (April to June). Sources said the civic body is expected to receive the amount by Monday.The UT administration has earmarked a total grant-in-aid of Rs 850 crore for the MC for the current financial year. Based on the municipal corporation’s projected financial requirements, the UT finance department cleared the first-quarter instalment of Rs 300 crore. Officials said the sanction was issued after taking into account both developmental works and committed liabilities of the civic body.As the GiA is released as a consolidated amount, the MC has the discretion to plan expenditure according to priorities. While clearing committed liabilities remains the top priority every month, developmental works in municipal wards have gained focus, particularly as the ongoing financial year marks the final year of the present five-year MC tenure. Elections for the new municipal corporation are scheduled to be held in December, and councillors across wards have been pressing for expedited development projects.An MC official said several works are underway on the ground, while paperwork for hundreds of small and large projects is currently at different stages of planning and approval. “Many works are ongoing, and planning process for numerous projects is in progress. In the recently held monthly House meeting, more than 40 agenda items related to development works in multiple municipal wards were approved. The tendering process for these works will begin within a month after minutes of the meeting are approved,” the official said.The official added that the MC is not facing a financial crunch at present, allowing development works to be taken up on priority in various wards, based on requirements flagged by councillors and field offices.As per MC records, the civic body has committed monthly liabilities of around Rs 75 crore. These obligations constitute a significant portion of the civic body’s routine expenditure and include salaries and wages of employees, pensionary benefits for retired staff, and other recurring office expenses such as electricity, water and fuel charges. Minor repair and maintenance works are also part of the regular committed expenditure.Officials said the accounts department of the MC closely scrutinises all financial requirements before releasing funds. Disbursement of money is done after reviewing detailed expenditure estimates and obtaining approvals from senior officers, primarily the municipal commissioner.The sanctioned first-quarter grant is expected to enable the MC to meet its regular financial commitments while continuing with planned development works across the city during the initial months of the financial year.MC’s monthly committed liabilitiesSalaries — Rs 15.40 croreWages — Rs 26 crorePension — Rs 3.60 croreElectricity and water bills — Rs 12.50 croreMinor works and maintenance — Rs 11.50 croreOther charges — Rs 3.50 crorePetrol, oil and lubricant — Rs 2.50 croreTotal — Rs 75 croreMSID:: 130354823 413 |
