Chandigarh administration sanctions interim budget of INR 300 crore

In a bid to resolve the financial deadlock faced by the Chandigarh Municipal Corporation (MC), the UT administration has sanctioned an interim budget of INR 300 crore for the next three months in the new financial year. This decision comes amidst uncertainties surrounding the approval of the budget passed by the MC general house for the fiscal year 2024-2025.
Sources reveal that under the interim budget, the MC has been granted permission to allocate INR 100 crore per month from its own revenue and grant-in-aid to address various committed liabilities. These liabilities primarily include employee salaries, garbage processing expenses, minor infrastructural works, taxes, and payments for tendered contracts.
The necessity for an interim budget arose as the administration had not yet finalized its decision regarding the budget meeting held by the MC general house on March 6. Despite the administration's delay in approving the budget, the MC was under pressure to address its financial obligations for the new fiscal year.
The budget meeting on March 6, called by Mayor Kuldeep Kumar, faced legal challenges from councilors who argued that it could not be held before the constitution of the Finance and Contract Committee (F&CC). Despite legal scrutiny and requests for cancellation, Mayor Kumar proceeded with the meeting, resulting in the passage of the budget by the house.
Following the passage of the budget, the MC submitted it to the administration for approval. However, the administration has yet to provide a final decision on both the budget meeting and the budget itself.
In the interim, the UT local government department forwarded the BJP councilors' representation challenging the legality of the budget meeting. This prompted the MC to seek legal counsel from the UT senior standing counsel to navigate the complex legal landscape.
While the interim budget provides a temporary respite for the MC to meet its financial obligations, the looming uncertainty regarding the approval of the budget for the fiscal year 2024-2025 underscores the need for swift administrative action to ensure the smooth functioning of municipal operations in Chandigarh.

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Chandigarh administration sanctions interim budget of INR 300 crore

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