MOHALI: The financially struggling Mohali Municipal Corporation (MC) is considering new taxes and adjustments to existing ones in order to sustain civic projects. Currently, the MC has just Rs 15 crore available, while it has projects worth Rs 40 crore poised for allotment.
MC commissioner Parminderpal Singh Sandhu disclosed this challenging situation during a recent meeting, conceding that the organization cannot fulfill the city’s development requirements. He criticized Gmada for not providing financial assistance, which has left the MC reliant on limited resources. Sandhu stated, “We need to implement new taxes to enhance our revenue. The Mohali MC is facing significant financial challenges, with projects worth Rs 40 crore but only Rs 15 crore in reserve.”
He also mentioned plans to increase water tariffs and discontinue free water supply to approximately 15,000 households. These measures are aimed at generating additional income for the MC to carry out essential projects.
Additionally, Sandhu plans to engage with Gmada to demand the MC’s rightful share of income from various sources, including funds designated for the upkeep of parks, roads, and markets.
At present, property tax serves as the primary source of revenue for the MC, targeting Rs 55 crore for the fiscal year 2025-26. Other income sources include Rs 27.5 crore from advertising, Rs 10 crore from municipal electricity tax, and an anticipated Rs 100 crore from Punjab Municipal Funds.
However, Mayor Amarjit Singh Sidhu highlighted an additional hurdle. He noted that the MC did not receive the Rs 10 crore municipal tax on electricity for 2024-25 due to the ruling government offsetting it against PSPCL’s tubewell power bills. “This rerouting of funds deprived the MC of its due share, exacerbating our financial woes,” Sidhu remarked.
The commissioner’s frank assessment underscores the severity of Mohali’s civic challenges. With numerous unfinished projects and complaints from councillors about delays linked to funding shortages, the corporation is now left with the difficult decision of imposing new taxes on residents to ensure the city continues to function.
