MCG Gurgaon's Financial Performance: High Budget Utilisation Amid Revenue Challenges
The Municipal Corporation of Gurgaon (MCG) has demonstrated robust financial activity in the current fiscal year, with data up to January 31 revealing significant budget utilisation and mixed revenue outcomes. According to civic body reports, MCG has expended approximately 85% of its total allocated budget for the financial year 2025–26, while generating about 66% of its projected revenue so far.
Expenditure Overview: Key Sectors and Overspending
The total expenditure stands at an impressive Rs 1,282 crore out of a total allocation of Rs 1,497 crore. Among the major expenditure heads, road construction has seen substantial utilisation, with the civic body spending Rs 85 crore, which accounts for about 77% of the allocated Rs 110 crore. In the sanitation and solid waste management sector, MCG has already spent Rs 240 crore out of the Rs 390-crore allocation, achieving a 61.5% utilisation rate. Within this sector, door-to-door waste collection represents the largest share of spending, with Rs 156 crore expended from the Rs 310 crore allocated, despite reliance on temporary measures for this service.
Notably, some areas have experienced budget overshooting. For operations and maintenance of sewage treatment plants (STPs), sewerage systems, and water supply, the civic body spent Rs 43.2 crore against an allocation of only Rs 28 crore. Similarly, under repair and maintenance, the corporation spent Rs 304.9 crore, significantly exceeding the approved outlay of Rs 197.3 crore.
Revenue Generation: Property Tax Leads the Way
On the revenue side, MCG has generated Rs 1,039 crore out of a projected Rs 1,562 crore. Property tax remains the biggest contributor, with Rs 295.3 crore collected against an estimated Rs 275 crore, already surpassing the annual target. MCG Commissioner Pradeep Dahiya highlighted this achievement, noting that property tax collection reached Rs 305 crore as of February 28, exceeding the fiscal year target due to efforts by joint commissioners.
However, several other revenue heads are lagging behind projections. Revenue from stamp duty stands at Rs 188.6 crore against a projected Rs 500 crore, while advertisement revenue reached Rs 85.9 crore against a Rs 100-crore estimate. The corporation also projected Rs 128 crore through municipal bonds but has raised only Rs 13.8 crore so far. In contrast, auction and sale of municipal properties generated Rs 125.8 crore against a projection of Rs 6 crore, far exceeding expectations.
Infrastructure and Development Expenditure
Under the development expenditure head, MCG allocated Rs 400 crore for 2025–26, with Rs 310.9 crore (approximately 77%) already spent. This includes Rs 56.3 crore spent on the purchase of land and building out of a budget allocation of Rs 111 crore. For the purchase of bulk water supply, Rs 241 crore was spent against an allocation of Rs 100 crore, with this amount paid to the Gurugram Metropolitan Development Authority (GMDA). On the construction of STPs, sewerage systems, and water supply infrastructure, the civic body spent Rs 69.4 crore against an allocation of Rs 70 crore.
Challenges and Low Utilisation Areas
Despite high overall utilisation, certain critical infrastructure maintenance heads show low spending. Only Rs 1.9 crore was spent out of Rs 4 crore allocated for repair and maintenance of stormwater drains, while Rs 5.8 crore (58.6%) was spent from the Rs 10-crore allocation for road repairs. For operation and maintenance of water tankers and septage management tankers, the corporation spent Rs 10 crore out of Rs 15 crore allocated.
Stakeholder Perspectives and Future Focus
Ward 11 Councillor Kuldeep Yadav emphasized the need to enhance revenue further, stating, "As one of the most revenue-generating civic bodies, our focus should be on enhancing revenue. We have achieved nearly 70% so far, but I am certain we can do better. While we have improved property tax collection, we need to work in other areas." Gauri Sarin, convener of Gurgaon Residents Against Pollution and Making Model Gurugram, advocated for high-quality responsive municipal services using digital systems, aligning with resident demands.
Commissioner Dahiya also noted progress in revenue from water and sewerage charges, attributing it to technology intervention, use of AI, and efforts by Additional Commissioner Yash Jaluka. The deferral of bids for doorstep waste collection contractors, pending clarification from the Haryana Urban Local Bodies department, highlights ongoing operational challenges.
In summary, MCG Gurgaon's financial performance reflects strong budget utilisation but underscores the need for balanced revenue enhancement across all sectors to meet annual projections effectively.
