Haryana Municipal Corporations Underutilize Grants, Gurgaon Emerges as Weak Performer
Municipal corporations across Haryana have significantly underutilized central and state grants, with Gurgaon standing out as one of the poorest performers despite receiving the largest allocation. As Chief Minister Nayab Singh Saini prepares to present the 2026-27 state budget on March 2, financial records accessed by TOI reveal a troubling trend of low expenditure on urban infrastructure funds.
Alarming Underutilisation of Central Grants
Data shows that civic bodies in Haryana collectively spent just Rs 33.4 crore out of Rs 353.6 crore released in the current fiscal year under Central Finance Commission (CFC) grants as of December 31, 2025. This accounts for an overall utilisation rate of only 9.5%, meaning more than 90% of central funds earmarked for urban development remained unused.
Gurgaon received the highest grant of Rs 94 crore among all municipal corporations but utilised only over 9%, placing it among the weakest performers. Faridabad, another major corporation, also lagged despite receiving one of the biggest allocations.
Zero Expenditure Reported in Multiple Cities
Shockingly, Panchkula, Yamunanagar, and Faridabad reported zero expenditure despite receiving Rs 25.5 crore, Rs 38.4 crore, and Rs 33.6 crore, respectively, under the CFC in the current fiscal year. Rohtak spent only 3.5% of its allocation, while Panipat recorded the highest utilisation but still only 37.8%, indicating no corporation used even half of its funds.
State Grant Utilisation Also Low
Under the State Finance Commission, municipal corporations received Rs 1,393 crore through transfers between 2022-23 and 2025-26. Of this, Rs 733 crore was spent by December 2025, an overall utilisation rate of 52.7%. No district crossed 62% over the three-year period.
Faridabad recorded the lowest long-term utilisation at 48% despite receiving the largest allocation of Rs 307.6 crore. Gurgaon, the second-highest recipient with Rs 279 crore, spent only 52.2%, roughly in line with most corporations clustered in the low-50% range.
Officials Cite Procedural Constraints
A senior Municipal Corporation of Gurgaon (MCG) official attributed the low utilisation to multiple factors. "These grants are released for specific projects and can't be diverted to other projects," the official explained. "Preparing detailed project reports, securing approvals, and finalising tenders often takes months, delaying actual spending."
The official added that allocations sometimes arrive late, making it difficult to utilise them completely within the fiscal year. "We received the CFC grant of 2023-24 just four months ago, so it is challenging to spend it fully now. Tender disputes, low bidder participation, and cost revisions can stall projects, leading to underutilisation," the official stated.
Historical Context and Budget Projections
During the previous grant cycle from 2020-21 to 2024-25, municipal corporations collectively utilised more than 90% of their central allocations. Several cities recorded near-perfect spending rates, including Panchkula and Gurgaon at 100% and Karnal and Panipat at over 99%.
As municipal corporations prepare their annual budgets, MCG has allocated Rs 1,497 crore for the current fiscal year, with estimated income projections pegged at Rs 1,571 crore. The widespread underutilisation raises concerns about effective financial management and urban development planning in Haryana.
