Chandigarh Municipal Corporation Finalizes Landmark Rs 1,712 Crore Budget for 2026-27
The Chandigarh Municipal Corporation has officially sanctioned a substantial budget of Rs 1,712 crore for the fiscal year 2026-27, set to commence on April 1. This allocation represents one of the most significant financial plans in recent municipal history, underscoring a robust commitment to urban development and civic enhancement.
Record Capital Allocation for Infrastructure Development
In a groundbreaking move, the budget earmarks Rs 610 crore under the capital segment, marking the first instance in recent years where such a considerable sum has been designated for capital expenditures. This strategic focus highlights the Municipal Corporation's determined effort to accelerate major developmental initiatives throughout Chandigarh.
The remaining Rs 1,102 crore has been allocated to the revenue segment, ensuring the smooth operation of essential municipal services and administrative functions.
Addressing Backlog of Pending Works
Municipal officials have acknowledged that numerous developmental projects have been delayed over recent years due to financial limitations, with only emergency or critically essential works receiving priority. This has resulted in a significant accumulation of pending tasks across various municipal wards, many of which now demand urgent attention.
To effectively tackle this backlog, the corporation has prioritized a substantial capital investment for the upcoming fiscal year, aiming to initiate and complete long-overdue infrastructure improvements.
Comprehensive Development Initiatives Under Capital Segment
The capital budget encompasses 24 major and minor heads, covering a diverse array of development activities designed to enhance urban living standards. Key focus areas include:
- Improvement of city roads and parking facilities with an allocation of Rs 140 crore
- Augmentation of the water supply system receiving Rs 61.75 crore
- Storm water drainage projects allocated Rs 50 crore
- Sewerage system enhancements with Rs 44.50 crore
- Solid waste management initiatives granted Rs 32.50 crore
- Ward development fund receiving Rs 30.80 crore
- Civic works, sanitation, and allied services with combined allocations exceeding Rs 49.78 crore
- Landscaping projects allocated Rs 13 crore
- Development of basic amenities for Economically Weaker Sections (EWS) with Rs 14.53 crore
- Electrification projects, gaushala development, and vendor cell establishment
Streamlined Implementation Process
Municipal sources have indicated that preparatory work for several projects has already commenced, including necessary paperwork and procedural steps. This proactive approach ensures that execution can begin immediately upon the start of the new financial year on April 1, minimizing delays typically associated with administrative processes.
"The moment the new financial year begins, the works can start on the ground without wasting time on procedural processes," sources revealed, emphasizing the corporation's commitment to timely project implementation.
Revenue Allocation for Operational Sustainability
Under the revenue segment, where Rs 1,102 crore has been provisioned, the largest expenditure category is wages, with Rs 338.6 crore allocated for annual payments. Other significant allocations include:
- Salary and establishment expenses receiving Rs 261.2 crore
- Payment of electricity bills allocated Rs 136.6 crore
- Minor works with Rs 129.2 crore
- Pensionary charges granted Rs 58 crore
- Fuel and lubricants receiving Rs 32 crore
- Office expenses allocated Rs 18.6 crore
- National Pension System (employees share) with Rs 9 crore
- Hiring of vehicles receiving Rs 5.70 crore
- Swachh Bharat Mission initiatives granted Rs 5 crore
Administrative Support and Approval Process
The budget will be presented before the general house in a special meeting scheduled for later this month, where members will review and approve the financial plan. Following municipal approval, the budget will be forwarded to the Chandigarh administration for final consideration and clearance.
In a significant boost to municipal finances, the Chandigarh administration has already earmarked a Grant in Aid (GiA) of Rs 850 crore for the Municipal Corporation. This amount represents the highest ever allocation from the UT administration, exceeding the previous grant of Rs 625 crore by more than Rs 225 crore.
With funds becoming available from April, municipal sources confirm that developmental works will proceed at an accelerated pace, leveraging both the capital budget and administrative grant to maximize infrastructure improvements across Chandigarh.
