The Chandigarh municipal corporation (MC) is bracing for another tough year ahead, with the UT administration allocating a grant-in-aid of just ₹625 crore for financial year 2024-25 against its demand of ₹1,704 crore.

Though MC’s share saw an unprecedented hike, going up by around 12% from last year, the civic body once again finds itself on a tightrope walk, with the funds insufficient to cover its committed liabilities of around ₹900 crore, which include staff salaries, pensions and water/electricity bills—expenditures that cannot be ignored.
The limited grant also makes it impossible for the civic body to resume vital development works that remain halted since May 2024. With no immediate resolution in sight, MC will have to work on increasing its revenue streams to meet the shortfall.
A host of city’s civic infrastructure and amenities, including roads, water supply, waste disposal and sewerage, fall under MC’s ambit.
Over the years, the civic body’s request for higher funding have repeatedly been met with disappointment.
Last year, MC had requested ₹1,651.7 crore grant-in-aid from the UT administration, only to receive ₹560 crore, after getting just ₹555 crore against ₹1,332.50 crore in FY 2023-24.
Even in 2022-23, its demand for ₹981 crore was slashed to ₹545 crore. This year-after-year shortfall continues to stunt the corporation’s ability to operate smoothly.
For the upcoming fiscal year, MC had requested ₹1,704 crore as grant-in-aid, including funds to implement the 4th Delhi Finance Commission recommendations and reimbursement of electricity duty, which is not currently being paid by the UT administration.
Newly elected Mayor Harpreet Kaur Babla assured, “MC has received an unprecedented hike, which is a positive sign amid the ongoing fiscal crisis. The BJP will continue to push for additional revenue from the Centre, and a special grant of ₹92 crore has already been announced for MC for the ongoing fiscal. Additionally, I am committed to generating more internal revenue for MC to bridge the gap and resume development works in the city.”