MC seeks ₹225cr for UT as grant-in-aid for Q2

Chandigarh: City municipal corporation has demanded Rs 225 crore as grant-in-aid (GIA) from the administration for the second quarter of the financial year 2024-2025.
Breaking it up, the MC has sought Rs 152 crore for its various liabilities, Rs 60 crore to complete the halted and new developmental works and Rs 13 crore as part of the 7th central pay commission.

The civic body said it requires Rs 283 crore to meet its expenditure for the second quarter, and that the remaining Rs 58 crore is its own income.
This time, the civic body said it wants the amount at one go unlike in the first quarter where it was on a month-on basis.
A letter to this effect has already been sent the secretary of local bodies, MC officials said. “MC is bearing Rs 70 crore expenditure per month on committed liabilities, which is salary, wages, medical, electricity, water, telephone, fuel bills, pension, pensionary benefits and maintenance works, etc,” the letter said.
MC is dealing with an acute shortage of funds which has halted initiation of new projects.
So much is the crunch that the accounts department has been ordered not to release any payments and keep them pending till the authority receives GIA amount of the second quarter.