Mohali Municipal Corporation Faces Budget Cuts of Rs 22 Crore

The Mohali Municipal Corporation (MC) faces significant financial challenges as the Punjab Local Bodies Department has reduced its proposed budget for the 2025-26 fiscal year by Rs 22 crore. The department approved a budget of Rs 188 crore, down from the Rs 211 crore initially sought by the civic body. This decision comes as the MC attempts to manage a surplus budget while addressing pressing infrastructure needs and ongoing urbanization.

In the budget presented, the MC projected an income of Rs 211.19 crore and an expenditure of Rs 158.69 crore. The spending plan included allocations such as Rs 64.50 crore for establishment costs, Rs 6.9 crore for contingency expenses, Rs 52.19 crore for committed liabilities, and Rs 35.31 crore for non-committed expenses. Despite the overall budget cut, the Punjab Local Bodies Department fully approved Rs 15 crore earmarked for solid waste management, which city officials have identified as a critical requirement.

Mayor Amarjit Singh Sidhu expressed mixed feelings about the budget cuts. He welcomed the allocation for solid waste management but raised concerns about the reduction. “Garbage collection is our city’s most pressing challenge,” he stated. “We are relieved the department approved that demand in full. But then again, Rs 22 crore was slashed from our proposal. We will appeal to the state government for additional grants, as torrential rains have battered the roads.”

This budget cut is not an isolated incident for the MC. Last year, for the 2024-25 fiscal year, the corporation proposed a budget of Rs 173 crore but received only Rs 160 crore in approval. Officials contend that these repeated reductions hinder the timely execution of essential projects, including road repairs, stormwater drainage upgrades, and improvements to community infrastructure.

A senior councillor highlighted the urgency of the situation, stating, “Mohali is expanding rapidly as a residential and commercial hub next to Chandigarh. The present funding is inadequate for the growing demands of citizens.” Mayor Sidhu reaffirmed the MC’s commitment to seeking additional financial assistance, insisting that the civic body’s needs cannot be met with diminishing budgets year after year.

As the MC adapts to the reduced budget, it must balance critical services with long-standing development projects. The allocation of Rs 188 crore will need to cover essential services while addressing urgent infrastructure needs.

In previous fiscal years, the Mohali MC has consistently passed surplus budgets, but local bodies have frequently trimmed these budgets. For context, in the 2024-25 fiscal year, a surplus budget of Rs 173 crore was passed, yet the local bodies sanctioned only Rs 160 crore, resulting in a Rs 13 crore cut. The trend continued in 2023-24, where a surplus budget of Rs 190 crore was reduced by Rs 17 crore to Rs 173 crore.

Looking ahead to the 2025-26 fiscal year, the highest income sources are projected to include Rs 55 crore from property tax, Rs 27.5 crore from advertisements, and Rs 10 crore from a municipal tax on electricity. The Punjab Municipal Funds are also expected to contribute Rs 100 crore to the budget.

Key reductions made by the department include cutting the municipal fund from a proposed Rs 100 crore to Rs 90 crore and slashing the municipal tax on electricity from a requested Rs 10 crore to just Rs 1 lakh.

With these financial constraints, the Mohali Municipal Corporation must navigate its budget carefully, ensuring the delivery of essential services while advocating for increased funding to meet the growing demands of its residents.