After enduring prolonged financial difficulties, the Chandigarh Municipal Corporation is poised for a significant turnaround. The Chandigarh administration has allocated a substantial Rs 850 crore grant-in-aid (GIA) to the MC for the upcoming financial year 2026-2027, providing much-needed relief to the civic body.
A Substantial Financial Injection
This allocation represents a remarkable 36% increase compared to the current financial year's Rs 625 crore grant. The enhanced funding comes as a welcome development for the MC, which has faced severe financial constraints in recent times. According to official sources, the GIA was earmarked shortly after the Union Territory received its budget from the central government on Sunday.
Quarterly Disbursement and Accountability
The Rs 850 crore will be released in four quarterly instalments, with the first payment scheduled for April 2026, coinciding with the beginning of the new financial year. This disbursement pattern follows established procedures from previous years. However, with the increased funding comes enhanced accountability requirements.
The municipal corporation will be required to submit detailed expenditure reports for each quarter to the finance department of the Chandigarh administration. These reports must comprehensively explain how the funds were utilized, ensuring transparency in financial management.
Ending Years of Financial Strain
The increased allocation comes after careful consideration of the MC's financial requirements and potential contingencies. This boost is particularly significant given the corporation's recent struggles. Over the past several years, the MC reached such dire financial straits that it had to withdraw pension funds to meet employee salary obligations—a clear indicator of the severity of its fiscal challenges.
Budget Components and Allocation
The MC's budget comprises two primary components:
- Revenue Segment: This covers the majority of the corporation's expenditures, including committed liabilities, salaries, and related operational costs.
- Capital Component: Dedicated to developmental works across all municipal wards, this portion funds infrastructure improvements and community projects.
The current financial year, which concludes on March 31, saw the MC receive Rs 625 crore in GIA. The substantial increase to Rs 850 crore for 2026-2027 signals a renewed commitment to municipal governance and public service delivery in Chandigarh.
Historical Context and Future Implications
The grant-in-aid to Chandigarh MC has shown a consistent upward trajectory over the past decade:
- 2017-2018: Rs 319.26 crore
- 2018-2019: Rs 319.26 crore
- 2019-2020: Rs 450 crore
- 2020-2021: Rs 500 crore
- 2021-2022: Rs 530 crore
- 2022-2023: Rs 550 crore
- 2023-2024: Rs 560 crore
- 2024-2025: Rs 560 crore
- 2025-2026: Rs 625 crore
- 2026-2027: Rs 850 crore
This financial enhancement enables the municipal corporation to ensure smoother and more effective functioning, which directly translates to improved facilities and services for Chandigarh residents. With adequate funding now secured, the MC can focus on addressing long-pending development projects and enhancing urban infrastructure without the constant shadow of financial uncertainty.
