The Chandigarh Municipal Corporation (MC) has prioritised salaries, wages and pensions in its revenue budget for the financial year 2026-27, allocating Rs 1,050 crore to meet committed liabilities. The highest expenditure is planned for the first quarter, reflecting the civic body's focus on timely disbursement after last year's financial strain.
Breakdown of Revenue Expenditure
The MC has set aside Rs 338 crore for wages, Rs 261 crore for salaries and Rs 58 crore for pensions. Other significant allocations include Rs 128 crore for electricity bills and Rs 124 crore for minor works. The total expenditure across 11 components amounts to Rs 1,050 crore.
Quarter-wise Expenditure Plan
The expenditure plan is front-loaded, with Rs 289 crore projected for the first quarter, followed by Rs 265 crore in the second, Rs 253 crore in the third and Rs 243 crore in the final quarter. This approach aims to ensure smooth payment of fixed liabilities.
Officials stated that revenue expenditure largely comprises fixed liabilities that cannot be deferred. Salaries, wages and pensions must be paid on time, and these heads cannot be deviated from, sources said. Instructions have been issued to ensure timely disbursement after last year's diversion of pension funds to meet salary and wage payments drew criticism.
Comparison with Previous Year
In 2025-26, the MC spent Rs 956.78 crore under the revenue segment. Wages accounted for the largest share at Rs 314 crore, followed by Rs 243 crore for salaries. Electricity and minor works cost Rs 112 crore each.
Sources indicated that an increase in grant-in-aid from the Chandigarh administration this year is expected to ease financial pressure and ensure smooth payment of committed liabilities.
Detailed Allocation by Head
- Salaries: Rs 261 crore (Q1: 80 cr, Q2: 65 cr, Q3: 60 cr, Q4: 56 cr)
- Wages: Rs 338 crore (84.5 cr per quarter)
- Pension: Rs 58 crore (Q1: 19 cr, Q2: 16 cr, Q3: 14 cr, Q4: 9 cr)
- NPS: Rs 9 crore (Q1: 3 cr, Q2: 2 cr, Q3: 2 cr, Q4: 2 cr)
- Medical reimbursement: Rs 3 crore (0.75 cr per quarter)
- Electricity bills: Rs 128 crore (32 cr per quarter)
- Minor works: Rs 124 crore (Q1: 35 cr, Q2: 33 cr, Q3: 28 cr, Q4: 28 cr)
- Petrol/oil/lubricants: Rs 30 crore (Q1: 10 cr, Q2: 7 cr, Q3: 7 cr, Q4: 6 cr)
- Sanitation: Rs 52 crore (13 cr per quarter)
- Office expenses: Rs 15 crore (3.75 cr per quarter)
- Other expenditure: Rs 32 crore (8 cr per quarter)
Key Highlights
The top spends include wages at Rs 338 crore, salaries at Rs 261 crore, electricity bills at Rs 128 crore, minor works at Rs 124 crore and pension at Rs 58 crore. The quarter-wise outlay is Rs 289 crore for Q1, Rs 265 crore for Q2, Rs 253 crore for Q3 and Rs 243 crore for Q4.
