MC Chandigarh Faces Financial Crunch | Might Introduce More Taxes for Citizens

What can be a better starting to this news than coming to the fact that you might have to pay more tax in Chandigarh. Yes! More taxes.

The Chandigarh Municipal Corporation is facing financial hardships. As per reports, Chandigarh MC is generating Rs. 130 crore which is not even half of their employee’s salaries that stand at a whopping amount of Rs. 300 crores. Commissioner B Purushartha has insinuated that residents should be prepared to pay more taxes to help the MC in this financial crisis. No developments will be able to carry out its services if new revenue is not generated.

Money Matters (The Big Numbers)

Municipal Corporation was allocated a budget of Rs. 419 crore by the UT administration. Out of the given Rs.419 Cr, Rs.100 Cr has been tied to smart city project and Rs.50 Cr to Kajauli water works. Municipal Corporation pays Rs. 300 Cr in salaries and are left with only Rs. 269cr and were short of Rs. 31cr a year for paying salaries.

After leaving this money aside, the fact is that Chandigarh Municipal Corporation is left with only Rs. 269 Crore, while they have to pay salaries amounting to Rs. 300 Cr to the employees. So, Chandigarh MC is short of 31 Crore for this year.

According to politicians,

  • MC’s properties are lying vacant which is worth over Rs. 200 crore.
  • Municipal Corporation did not collect over Rs. 12 crore from water bill defaulters.
  • It was said that MC’s water generation revenue has plunged to Rs. 55 crore in 2016 from Rs. 60 crore in 2015.
  • Shops in the Sector-17-22 subway are lying vacant since past ten years.
  • MC could also not earn revenue of over Rs 5 crore from parking lots in Chandigarh as most of them were lying vacant.

How Chandigarh MC generates Revenue

Chandigarh MC is generating revenues through property tax, paid parking lots, cable operator rents, community centres, taxi stands, by auctioning seized articles, rickshaw license, festival charges, eating joints, night food street rentals, liquor and subway shops.

Let’s hope MC Chandigarh finds a way out and the common man is not asked to pay more taxes in Chandigarh.

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Tushar Pasrija

Tushar Pasrija is a digital marketer, public speaker and globetrotter who loves reading autobiographies and thrillers. He is passionate about wildlife and landscape photography. You may reach Tushar at hello@chandigarhmetro.com