Chandigarh Administration Struggles Due to Delay in Revised Estimate Release

Chandigarh: The Chandigarh Administration is facing significant delays in several projects due to the Centre’s failure to release the Revised Estimate (RE) for the financial year. As a result, various non-planned works have been put on hold, and payments to contractors are pending due to a lack of funds. For the past two to two-and-a-half months, pending bills have not been cleared, leading to a financial bottleneck. The Administration hopes that the RE will be issued soon to resolve the situation.

The UT Administration has requested a 14% increase in the Revised Estimate for the 2024-25 budget, primarily due to increases in TA-DA and HRA. Additionally, funds for several development works have been sought. A total of 911 crore rupees have been requested in the RE. Normally, the Centre releases the RE in a timely manner, but this year the delay has impacted various works, especially those not pre-approved in the budget. These works include special repairs in schools, hospitals, and other essential infrastructure projects, which are now facing significant setbacks due to the delay.

Officials have pointed out that many heads remain vacant, halting progress on essential work. Additionally, several old bills remain unpaid. Typically, the RE is released by December, but with mid-January already passing, the Administration is yet to receive any funds. If the Revised Estimate is not released soon, it could jeopardize several important projects. The delay is compounded by the fact that the Finance Secretary has been on leave for several days, with the department running on additional charge.

The Municipal Corporation, too, is facing a financial crisis. The Corporation is in dire need of funds, struggling to pay employee salaries for January. The revised estimate is crucial for the Corporation as it has not been able to carry out any new development work, and there has been no new tendering process. The Municipal Corporation has requested 200 crore rupees from the Administration, hoping that an increased RE will help stabilize its finances.

For the next financial year, the UT Administration has requested a budget of 7950 crore rupees, a substantial increase from the current year’s allocation of 6513.62 crore rupees. However, historically, the Centre approves a lower amount, which poses a continuous challenge for the Administration’s planned and unplanned projects.