Chandigarh: The Municipal Corporation (MC) has sought a budgetary allocation of ₹1,500 crore for the financial year 2027-28 and an additional ₹50 crore under the revised estimates (RE) for 2026-27 from the Chandigarh administration, officials said on Monday.
Funds aimed at accelerating development works
The civic body has asked the Union Territory local government and finance department to sanction the amounts after submitting its budget estimates and expenditure details up to August 31, 2026. The MC said the extra ₹50 crore under the RE for the current year is intended for development works and would help speed up ongoing and planned projects ahead of the municipal elections scheduled in December.
According to figures provided by the corporation, total expenditure up to August 31, 2026, included ₹55.2 crore under the capital head — primarily for development projects — and ₹389.3 crore under the revenue head, which covered committed liabilities such as salaries, wages, pensions and bills.
Priority projects and releases
In its budget estimates the MC has included provision for installing night shelters across the city and has allocated funds for construction and repair works across various engineering wings. Sources in the civic body said that with ₹55 crore already released, work worth crores is underway across building and roads, sewerage, stormwater, water supply, horticulture, electrical, and solid and liquid waste management divisions.
- Capital expenditure to date: ₹55.2 crore
- Revenue expenditure to date: ₹389.3 crore
- Additional amount sought under RE 2026-27: ₹50 crore (for development works)
- Budget demand for 2027-28: ₹1,500 crore
Officers responsible for the projects have been directed to complete works within stipulated deadlines, the MC said. Some new community centres have already been allotted to agencies after completion of tendering processes.
Reimbursement of electricity duty remains unresolved
Alongside the outlay proposals, the MC has pressed for reimbursement of electricity duty under the Punjab Municipal Act, 1976, as extended to the Union Territory. The corporation reminded the administration that the amount is due under Section 90(6)(c) of the Act, but the reimbursement remains pending with the Ministry of Home Affairs (MHA).
“While pressing for reimbursement of electricity duty, which is pending with the Ministry of Home Affairs (MHA), the MC, in its letter to the UT administration, said it had been continuously demanding reimbursement in accordance with Section 90(6)(c) of the Punjab Municipal Act, 1976, as extended to the Union Territory of Chandigarh.”
Officials said the MC has formally communicated the demand for duty reimbursement to the UT administration as part of its budget submission. The reimbursement, if granted, would ease the corporation's revenue head pressures by offsetting a recurring cost component.
Administrative oversight and election context
Sources added that the Punjab Governor, who is also the UT Administrator, is closely monitoring developments related to MC works and fund releases. The timing of the additional RE demand — positioned to accelerate development works — coincides with preparations ahead of the municipal polls in December, a factor the civic body flagged as a rationale for urgency.
| Item | Amount (₹) |
|---|---|
| Budget request for 2027-28 | 1,500 crore |
| Additional RE sought for 2026-27 | 50 crore |
| Capital expenditure till Aug 31, 2026 | 55.2 crore |
| Revenue expenditure till Aug 31, 2026 | 389.3 crore |
The MC has also highlighted the need for timely release of funds to ensure contractors and agencies can proceed with the awarded works without delays. Several tenders for community infrastructure have been finalised and work orders issued, the civic sources said.
In its communication, the corporation requested that the UT administration take up the matter of electricity duty reimbursement with the MHA to secure the dues and improve the fiscal position of the MC.
Further details on the full budget document and line-wise allocations were not disclosed in the submissions made public by the corporation, but the amounts and priorities outlined above were confirmed by officials involved in preparing the estimates.
