In a significant financial revival, the Chandigarh Municipal Corporation (MC) has reported a major turnaround in its fiscal health, driven by a substantial increase in its own revenue streams and stringent cost-cutting measures. The announcement was made by MC Commissioner Amit Kumar during the general house meeting held on Tuesday.
Substantial Growth in Revenue Streams
The civic body witnessed an impressive overall revenue increase of 22% when comparing the period from April to November in 2024 with the same period in 2025. This growth was fueled by a more than 23% rise in its own receipts and a 21% increase in grant-in-aid.
Specifically, the MC's own receipts jumped from Rs 231 crore in 2024 (April-Nov) to Rs 285 crore in 2025. Grant-in-aid also saw a significant boost, rising from Rs 487 crore to Rs 593 crore for the same comparative period.
The standout performers in revenue generation were property taxes. Revenue from residential property tax increased by over Rs 18 crore, while commercial property tax collections surged from Rs 36 crore to Rs 53 crore, a jump of approximately Rs 18.8 crore. Furthermore, collections from water charges and garbage charges together grew by Rs 16 crore, moving from Rs 115 crore to Rs 131 crore.
The administration also made strong recoveries, collecting Rs 23 crore in property tax arrears and Rs 16 crore in water charge arrears in 2025. Looking ahead, the MC anticipates additional revenue from several new initiatives:
- Rs 50 crore from parking solutions.
- Rs 20 crore from display advertisements.
- Rs 2.5 crore from roundabouts.
- Rs 2 crore from fountains.
Strategic Cost-Cutting and Efficiency Measures
On the expenditure side, the MC achieved a remarkable reduction of around Rs 30 crore between 2024 and 2025. A major contributor was the rationalization of manpower, which reduced staff by approximately 450 positions, leading to savings of Rs 25 crore. The salary bill alone was cut from Rs 179 crore to Rs 156 crore, and the wages bill reduced by Rs 13 crore.
Other significant savings were realized through operational efficiencies:
- Rs 80 crore saved on the installation of a proposed compressed biogas plant (to be managed by IOCL with central govt funding), plus Rs 5 crore in annual expense for processing wet waste.
- Rs 3.30 crore saved annually in dry waste processing through a new tender.
- Rs 3 crore recurring annual savings by discontinuing sanitary waste outsourcing and using the MC's own animal incinerator plant from November 1, 2025.
- Rs 1.5 crore saved by making the Chrysanthemum Show and Rose Festival 2025 self-sustaining through sponsorships.
- Rs 1.25 crore saved by reviewing and reducing the number of hired vehicles.
- Rs 1 crore saved by maintaining street and garden lights departmentally after the expiry of the EESL MOU.
An additional Rs 10 crore was saved from the restructuring of expenditure through careful monitoring of operation and maintenance works.
Administrative Support and Future Agenda
The financial restructuring received a further boost with the UT Administrator's announcement of an additional Rs 25 crore grant for the MC, providing crucial support for its initiatives.
During the Tuesday house meeting, several key agendas were passed, focusing on civic infrastructure and services. These included the construction of additional sheds for the future expansion of the Gaushala in Raipur Kalan, the modernization of the existing multispecies abattoir complex at the Industrial Area Phase 1 slaughterhouse, and the awarding of a comprehensive operation and maintenance contract for the city's door-to-door garbage collection fleet.
The combined strategy of aggressive revenue enhancement, recovery of dues, and multi-pronged cost rationalization has positioned the Chandigarh Municipal Corporation on a path of improved fiscal sustainability and service delivery.
