MCG incurs 85% budget expenditure, achieves 66% revenue target of this fiscal in Gurgaon
MCG incurs 85% budget expenditure, achieves 66% revenue target of this fiscal in Gurgaon
Gurgaon: Municipal Corporation of Gurgaon (MCG) has spent nearly 85% of its total budgetary allocation for the current financial year (FY 2025–26), even as only about 66% of projected revenue income has been earned till date.
Of this, the total expenditure is Rs 1,282 crore out of Rs 1,497 crore as per civic body data till January 31. Of the major heads of expenditure, road construction had a high utilisation with Rs 85 crore spent as compared to allocation of Rs 110 crore (77%).
On revenue, MCG earned Rs 1,039 crore of a projected Rs 1,562 crore. Property tax continues to be the largest component of revenue for the civic body, with Rs 295.3 crore collected against the target of Rs 275 crore.
In the sanitation and solid waste management sector, MCG has already utilised Rs 240 crore of the total allocation of Rs 390-crore, thus witnessing a utilisation of 61.5%. Waste collection from the door to door is by far the biggest share of spending within this sector. MCG has already spent Rs 156 crore from the Rs 310 crore sanctioned for the service, despite that the civic body depending on temporary arrangements for doorstep garbage collection.
Bids for empanelment of two contractors for the city’s doorstep waste collection for five years were deferred as MCG wanted certain clarification from the Haryana urban local bodies (ULB) department. While for operations and maintenance of sewage treatment plants (STPs), sewerage systems and water supply, the civic body spent Rs 43.2 crore out of an allocation of Rs 28 crore against the sanctioned budget.
The corporation has incurred an expenditure of Rs 304.9 crore for repair and maintenance, whereas the total outlay approved was only Rs 197.3 crore. However, expenditure under some of the critical infrastructure maintenance heads is still low. While only Rs 1.9 crore was used out of the total Rs 4 crore allocated under repair and maintenance of stormwater drains, from the allocation of Rs 10-crore for repairs of roads, Rs 5.8 crore (58.6%) was already spent on June 17.
Out of Rs 15 crore sanctioned in the current financial year, Rs 10 crore was spent by the corporation on operation and maintenance of water tankers and septage management tankers.
For 2025–26, MCG earmarked Rs 400 crore under the head of development expenditure. Rs 310.9 crore, almost 77% of this, had already been spent. Of the same capital expenditure, an amount of Rs 56 cr was already spent out of the total approved budget allocation of Rs 111 cr on purchase of land and building.
Bulk Water Supply: Rs 241 crore was spent for purchase against the allocation of Rs. 100 crore. MCG pays this amount to GMDA. On STPs, sewerage system and water supply infra, the civic body spent Rs 69.4 crore of an allocation of Rs 70 crore.
Speaking of the revenue, MCG-commissioner Pradeep Dahiya said, “We had really ramped up on that front as our property tax collection crossed Rs 305 crore till Feb 28. Target for property tax revenue in the current FY is Rs 275 crore. “With the help of our four joint commissioners, the work was done to ensure maximum recovery,” he said.
But some other revenue heads are still well below projected levels. Price tag revenues remain at Rs 188.6 crore as in opposition to a futuristic Rs 500 crore, whereas commercial costs stood at Rs 85.9 crore whereas an estimate of Rs 100-crore estimate was anticipated. The corporation also estimated Rs 128 crore through municipal bonds, but has so far raised Rs 13.8 crore under the head. Building plan application fees have yielded Rs 66 lakh instead of the expected Rs 11 crore.
On the other hand, auction and sale of municipal properties was much higher at Rs 125.8 crore against `Rs6 crore projected. Earnings from water and sewerage rates also exceeded the annual target. “We also achieved commendable numbers in the revenue generated from water and sewerage charges,” Dahiya added. It is due to use of technology and AI intervention and efforts by additional commissioner Yash Jaluka.’
Kuldeep Yadav, councillor of Ward 11, said “We are one of the most revenue generating civic bodies and we need to focus on enhancing the revenue. I am confident that we can do better than the nearly 70% we have achieved thus far. We need to focus on other aspects as we have enhanced our property tax collection.”
Gauri Sarin, who convenes two groups, Gurgaon Residents Against Pollution and Making Model Gurugram, said there should be an emphasis on high quality responsive municipal services using digital systems, which is what residents have sought.
Source : Gurgaon News – The Times of India
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