Chandigarh, 12 February 2024: Chandigarh Mayor Harpreet Kaur Babla, along with councillors from various parties, will meet Punjab Governor and UT Administrator Gulab Chand Kataria on February 21 for an informal discussion amid the Chandigarh Municipal Corporation’s (MC) worsening financial crisis.
Development projects across the city have remained stalled since May 2024 due to a funding shortfall.
The administrator has repeatedly denied the MC’s request for a special grant, instead directing officials and councillors to cut expenses and focus on generating revenue internally.
“I had requested an appointment with the administrator, and he has invited us to the Governor House on February 21,” Babla said.
“This is an informal meeting without a specific agenda, but we will discuss various issues concerning the city’s betterment.”
Since taking office on January 30, Babla has met Kataria multiple times, seeking an urgent additional grant of ₹170 crore to cover liabilities such as salaries, pensions, electricity bills, fuel costs, and other essential expenditures for February and March 2025.
Uncertainty over MC’s financial stability has deepened after the BJP’s Chandigarh unit president, Jatinder Malhotra, announced following Babla’s mayoral victory in January that the Centre had approved a special grant of ₹92 crore. The funds, however, are yet to be disbursed.
With the civic body’s coffers rapidly depleting, the Chandigarh administration has allocated just ₹625 crore as grant-in-aid for 2025-26—far short of MC’s demand of ₹1,704 crore.
The amount remains insufficient to cover its committed liabilities, which stand at approximately ₹900 crore, raising concerns over another financially strained year ahead.
