*Chandigarh, March 20:-*
City Mayor Smt. Harpreet Kaur Babla today met Hon’ble Minister of Home Affairs Sh. Amit Shah at New Delhi and raised critical financial concerns regarding the Municipal Corporation Chandigarh.
She highlighted the urgent need for the release of funds as per the recommendations of the 4th Delhi Finance Commission (DFC) and requested an interim solution based on the 3rd DFC recommendations until a final resolution is reached.
She said since the 4th DFC report was adopted in 2014, the MCC has been repeatedly urging the Chandigarh Administration and the Ministry of Home Affairs (MHA) to implement it. However, the matter remains unresolved, forcing the Corporation to struggle financially.
The Mayor explained that according to the 4th DFC, MCC is entitled to a share of various taxes, including:
* 30% of Value Added Tax (VAT) and Local Excise Duties
* 100% of Motor Vehicle Tax and registration charges
* 25% of tax on sales, purchase, or consignment of goods
* 100% of Service Tax collections and stamp duties
She said despite these provisions, MCC has only received Rs. 560 crore in Grant-in-Aid (GIA) for FY 2024-25, this significant shortfall has affected the Corporation’s ability to maintain essential services, including:
*Road Maintenance:* MCC manages 2000 km of roads across Chandigarh, repairing and constructing 270 km annually.
*Beautification & Parks:* MCC maintains 1800 neighborhood parks, over 100 large parks, and 1.75 lakh trees, while also installing open-air gyms for residents.
*Sanitation & Waste Management:* MCC carries out citywide sanitation, garbage collection, processing, and stray animal control etc.
*Street Lighting:* The Corporation funds repairs and maintenance of streetlights on all major roads without financial support from the Chandigarh Administration.
*Revenue Challenges:* MCC primarily earns through property tax and water bills, but major defaulters include government departments, with many cases stuck in legal disputes.
Given the rising expenses on salaries, pensions, electricity bills, and development projects, the Mayor requested an immediate additional fund release of Rs. 200 crore to cover essential costs for February and March 2025. She also urged that, starting FY 2025-26, the Grant-in-Aid be released quarterly instead of monthly to ensure better financial planning and stability.
The Mayor further intimated that responding to these concerns, the Home Minister expressed serious concern over the financial crisis faced by the Municipal Corporation Chandigarh and he assured to personally discuss the issue with the Governor of Punjab and Administrator of UT, Chandigarh to expedite a resolution.