Facing a significant financial crunch, the Mohali Municipal Corporation (MC) is preparing to impose new taxes and revise existing levies to ensure completion of civic projects. The corporation currently has only ₹15 crore in available funds, while projects ready for execution are valued at approximately ₹40 crore.
The MC’s cash shortage stems from insufficient allocations from the Greater Mohali Area Development Authority (GMADA) and delayed or diverted revenue streams, leaving the civic body reliant on limited internal resources. The situation was highlighted during a recent house meeting, where the MC commissioner acknowledged that the corporation is struggling to meet the city’s developmental requirements.
To bridge the funding gap, proposals under consideration include increasing water tariffs and discontinuing free water supply to around 15,000 households. Officials believe that such measures could boost revenue and provide relief for essential works. Additionally, discussions are planned with GMADA to secure the MC’s share of income from various sources, including funds designated for the maintenance of roads, parks, and markets.
Property tax remains the principal source of revenue for Mohali MC, with a target of ₹55 crore for the 2025-26 fiscal year. Other income streams include ₹27.5 crore from advertisements, ₹10 crore from the municipal electricity tax, and an anticipated ₹100 crore from the Punjab Municipal Funds. However, the MC has faced setbacks in collecting these revenues. For instance, the municipal electricity tax for 2024-25, amounting to ₹10 crore, was adjusted by the state government against tubewell power bills of Punjab State Power Corporation Limited (PSPCL). This diversion of funds exacerbated the financial constraints, delaying several ongoing projects.
The commissioner’s disclosure underscores the magnitude of Mohali’s fiscal challenges. Multiple infrastructure and development projects remain incomplete due to insufficient funding, and councillors have voiced concerns over delays. The corporation now faces a delicate balancing act: generating additional revenue through taxation without overburdening residents.
The financial strain has also prompted officials to explore cost optimization measures, including the prioritization of high-impact civic works. These initiatives aim to ensure that limited resources are utilized efficiently while addressing critical infrastructure and service gaps in the city.
Mayor Amarjit Singh Sidhu highlighted the adverse effect of diverted funds on the MC’s operational capacity, noting that the adjustments made by the state government directly impacted the corporation’s ability to deliver services and maintain public infrastructure. The combined pressures of resource scarcity, pending projects, and revenue diversion have created a challenging environment for municipal governance in Mohali.
As the MC moves forward with plans for new taxes and tariff adjustments, the focus will remain on stabilizing finances, expediting stalled projects, and safeguarding essential services. The municipal corporation’s strategies will also involve ongoing engagement with state authorities to secure rightful allocations and improve long-term financial sustainability.
Mohali residents may witness changes in water supply charges and other municipal levies in the coming months as the corporation seeks to address the immediate fiscal deficit and ensure that critical development works are completed on schedule.
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