Senior deputy mayor Rakesh Prashar has urged Punjab chief minister Bhagwant Mann to release the pending ₹202 crore share of the goods and services tax (GST) for the financial year 2024-25, citing the municipal corporation’s financial strain and the need for continued development work.
The GST allocation for Ludhiana’s civic body was set at ₹625 crore for this fiscal year, but only ₹423 crore has been disbursed so far. Prashar warned that the shortfall is affecting essential operations, including the payment of municipal salaries, which amount to approximately ₹40 crore for each month. “I have requested the CM to intervene and ensure the release of the remaining amount through the revenue department,” Prashar said. “Without it, planning future development projects will be difficult.”
Unmet targets
The municipal corporation (MC) has long struggled with its revenue targets, largely due to delayed or incomplete GST allocations. According to officials, this pattern of underfunding has made it challenging to meet financial obligations and invest in infrastructure projects.
City officials and municipal employees argue that the phasing out of the octroi tax — a once-significant revenue source — has left the MC weaker financially. “Before VAT and GST, Ludhiana’s MC earned a substantial amount through octroi fees. The transition reduced our income, and now we must find alternative revenue streams,” an official said. The MC general house, which was reconstituted recently after a two-year hiatus, is expected to deliberate on solutions to the funding crisis and explore sustainable revenue sources.
Source #TOI
