The North News

Chandigarh, March 20

Home Minister Amit Shah has assured Chandigarh Mayor Harpreet Kaur Babla that he will personally engage with Punjab Governor and Chandigarh Administrator Gulab Chand Kataria to address the Municipal Corporation Chandigarh’s (MCC) financial crisis. Expressing concern over the city’s fiscal strain, Shah committed to expediting efforts for a resolution.

Mayor Babla highlighted the MCC’s financial difficulties, citing the delayed implementation of the 4th Delhi Finance Commission (DFC) recommendations, which have been pending since 2014. She requested an interim arrangement based on the 3rd DFC until a permanent solution is reached. The MCC is entitled to a share of VAT, excise duties, motor vehicle tax, and service tax collections, but despite these provisions, it has received only ₹560 crore in grants for FY 2024-25, far below its operational needs.

The funding shortfall has disrupted key municipal services, including road maintenance, sanitation, waste management, and street lighting. The MCC oversees 2,000 km of roads, maintaining 270 km annually, along with managing 1,800 neighborhood parks, over 100 large parks, and 1.75 lakh trees. Revenue collection remains a challenge, with government departments among the largest property tax defaulters, leading to legal disputes.

To address the crisis, Mayor Babla has requested an additional ₹200 crore to cover essential expenses for February and March 2025. She also proposed a shift to quarterly grant disbursements instead of monthly payments to improve financial planning. Shah acknowledged the urgency of the situation and pledged to engage with the Punjab Governor and Chandigarh Administrator to ensure a swift resolution.