With Rs 5cr revenue, Dharamsala MC struggles to fund development
Despite passing a budget of Rs 141.51 crore for the current financial year, the Dharamsala Municipal Corporation (MC) remains heavily dependent on financial assistance from the state and Centre to meet its expenditures. With its own revenue generation standing at just Rs 5 crore, the civic body is relying on external grants to fund various development projects.
According to sources, the municipal corporation receives about Rs 15 crore each from the Central Finance Commission and the state budget, bringing its total assured receipts to Rs 35 crore. However, this still leaves a shortfall of Rs 106 crore, which the corporation hopes to secure from the state government to implement its proposed projects.
In an effort to improve its financial position, the MC has passed resolutions to send detailed project reports (DPRs) for various developmental initiatives to the state government for approval. These include plans for pedestrian-friendly streets, the development of the Charan area, green spaces, modular toilets, roundabouts, and a multi-level parking facility near the police grounds. Additionally, Rs 2 crore has been earmarked for the creation of model vending zones in the city. However, these projects are entirely dependent on government funding, and their execution remains uncertain.
To increase revenue from within the city, the MC has proposed raising the liquor cess from Rs 3 to Rs 5 per bottle and hiking the electricity cess from 1 paise to 10 paise per unit. However, given Dharamsala’s small population of just 50,000, these measures are unlikely to generate enough income to significantly reduce the dependence on state support.
MC Commissioner Zaffar Iqbal, when contacted, acknowledged the financial challenge, admitting that the corporation’s own tax revenue stands at merely Rs 5 crore. He confirmed that the MC would have to rely on grants from the state and Centre to execute its budgeted proposals.
In an attempt to ensure balanced development across the city, the MC has also allocated at least Rs 1 crore for developmental work in each of its 17 wards. While this initiative has been welcomed by MC members, it too remains contingent on receiving adequate funding from the state government.
As the Dharamsala MC pushes forward with its ambitious plans, its ability to implement them will largely depend on whether the required funds are granted by the government. Without substantial financial support, many of the proposed projects may remain on paper, further highlighting the MC’s struggle to generate adequate revenue from its own resources.
Himachal Tribune