Shimla, Feb 25

Raising cess on liquor, electricity and adding new charges like courier fee, the country’ oldest Shimla Municipal Corporation presented a budget of two hundred twenty crore for the next financial year 2021-22. Mayor Satya Kaundal in specially convened presented a surplus budget of 24.46 lakh for the financial year.

However it is pertinent to mention that the budget this year is 3 crores less than the previous year. Last year a budget of 225 crores was tabled. In 2019 the total outlay was 297 crores and in 2018 the budget outlay was around 355 crores. Since 2018 the budget outlay has decreased by more than 35 percent, attributed to fact that most developmental works of city have shifted been under smart city scheme.

Also read

More than 50 percent of the budget (222 crores), Rs 112 crores will be spent for developmental works. Besides all developmental works and basic facilities to be done at ward level are to be done under Shimla Smart City.

Talking about additional cess/charges, the corporation administration has justified burden of increase, to, economic losses in the Corona period and the increasing MC expenditure.

The MC has increased two rupees per bottle sold in liquor shops under MC Shimla, similarly Rs. 5 and 10 paisa per unit electricity cess has been increased to 20 paisa per unit. Apart from this, MC will charge a fee of Rs 5 per courier in its periphery and will resume the system of imposing stamp duty on registration of immovable properties in the city to raise income.

The budget also got relief, as it was announced to give concession of garbage charges to the BPL families of the city in view of the Corona period.

In her address Mayor Satya Kaundal stated that this was the fourth budget by BJP led MC and the second of her tenure.  She added that in the budget, provisions have been made for all-round development of the city despite the limited income of the MC. Suggestions were also made in the budget to increase income sources. So that in the coming years, the income of MC could increase and the development of city be accelerated. The mayor sought cooperation from city public and councilors to improve MC Shimla’s weak economic condition.

How will income increase TY

– Corporation will earn income of Rs 15 crore per year by starting green tax system.

– Rs 1 crore rupees on starting stamp duty on registration of immovable properties in the city.

– Rs 2 crores by increasing the rate of liquor by Rs 5 per bottle.

– Rs 1.75 crores by increasing electricity cess 10 paise per unit.

– Rs 10 crore per year from the allotment of MC parking by making an open bid.

Other plans

– Plan to increase income by using vacant land and existing properties for renovation and commercial purposes

– In the financial year 2021-22, the corporation’s income will increase by re-estimating the properties and fixing the rent.

– Also MC is expected to get 48 crore grant from the government in lieu of the loss of earnings from water and sewerage

MC to charge Rs 5 rupees fee on couriers

The Municipal Corporation will now collect tax on online shopping. The corporation will charge a fee of Rs 5 per courier, i.e an additional Rs 5 financial burden will be incurred on people shopping online. The corporation administration argues that this decision will raise the means of income.


Please enter your comment!
Please enter your name here