Building on a year of marked financial progress, the Municipal Corporation (MC) of Chandigarh has charted its preliminary fiscal roadmap for the upcoming financial cycle. The civic body has prepared a tentative income and expenditure plan for the year 2026-27, projecting significant outlays aimed at sustaining urban development.
Substantial Grant Sought as Per Finance Commission
In a move consistent with past practice, the Chandigarh MC is once again approaching the Union Territory administration for a major financial infusion. The request for a substantial grant-in-aid (GiA) is being made in line with the recommendations laid down by the 4th Delhi Finance Commission. This external funding remains a cornerstone of the corporation's financial strategy to bridge the gap between its own revenue and planned expenditures.
Breaking Down the Rs 1,715 Crore Budget Estimate
The draft budget estimates reveal a total projected receipt of Rs 1,715 crore for the financial year beginning April 1, 2026. This colossal sum is expected to be sourced from two primary streams. A dominant share of Rs 1,265 crore is projected to come from the GiA component requested from the administration. The remaining Rs 450 crore is estimated to be generated from the MC's own revenue sources, a testament to its ongoing efforts to enhance internal fund collection.
Approval Process and Next Steps
The tentative budget is now slated for a democratic review. It will be placed before the general house of the MC in February 2026 for discussion and approval by the elected representatives. Following the house's nod, the final budget document will be sent to the Chandigarh administration for its ultimate clearance, a mandatory step before the plan can be implemented. This process underscores the collaborative governance model between the local civic body and the central UT administration.
The formulation of this budget follows a period where the Chandigarh Municipal Corporation demonstrated significant improvement in both financial management and revenue generation in 2025. The current plan appears to be an attempt to build on that momentum, balancing dependency on central grants with a push for greater self-reliance through enhanced internal revenue streams.
