Some news reports have shown that Chandigarh Administration has been mismanaging the revenue generated from taxpayers and fails to protest against unfair treatment by the Union Government.
It was also said that every rupee collected as tax from the people of Chandigarh by the Administration goes to the Consolidated Fund of the Country, resulting in insufficient allocation to the Union Territory. Consequently, both the Administration and Municipal Council are compelled to impose additional taxes on Chandigarh residents to bridge the revenue gap.
However, it is important to note that the Union Government consistently allocates a budget that surpasses the revenue collected from taxes. The table below presents a comparative overview of the total budget allocation, expenditure, and revenue collection through taxes and other receipts during the past four years:
The Chandigarh Administration has effectively utilized the budget allocation provided by the Government of India in the past four years, as highlighted in the aforementioned table. Moreover, for the current financial year 2023-24, the Chandigarh Administration has secured an increased budget allocation of Rs. 6087.10 Cr., representing a growth of Rs. 307.98 Cr. (+5.33%) compared to the previous year’s budget allocation of Rs. 5779.12 Cr.
In light of these facts, it is incorrect to claim that the Union Government provides inadequate budget allocations in relation to the total taxes collected in Chandigarh. The Chandigarh Administration remains committed to prudent financial management and the utilization of allocated funds to address the needs of its residents effectively.
