Shimla Municipal Corporation Faces Rs 4 Crore Budget Shortfall

Shimla: The annual budget of Shimla Municipal Corporation will now largely depend only on property tax and garbage collection fees. These will form the primary sources for the corporation’s yearly budget, as most other fees are now limited to fines and penalties.

Previously, the corporation received fees for building plans, completions, and compounding, which contributed over Rs 4 crore annually to its revenue. However, these fees will now be deposited directly into the state government’s accounts, reducing the municipal corporation’s financial autonomy.

As a result, property tax and garbage collection charges will remain the main sources of revenue for the municipal budget. According to the corporation, the Urban Development Department has developed software that will transfer plan fees directly to government accounts online.

The corporation previously used these funds for development works and other basic infrastructure projects, but these allocations will no longer be available. The government stated that the new system aims to ensure transparency in all transactions. This decision will apply to all municipal corporations across the state.