The Nagpur Municipal Corporation (NMC) is staring at a serious cash crunch as its monthly Goods and Services Tax (GST) grant of ₹147 crore — normally credited in the first week — is yet to arrive from the state government. The delay, sources say, is linked to heavy payouts under the Ladki Bahin scheme during Raksha Bandhan, which has left the state treasury stretched.
For NMC, the GST grant is lifeblood — covering salaries of over 10,000 permanent and contractual staff, pensions, contractor bills, and utility payments. With August nearly half over, the civic body is now dipping into reserves that can barely last a month. “One month can be managed, but beyond that, we will hit a crisis,” warned a senior finance official.
The strain is worsened by NMC’s pending proposal for a 2% Dearness Allowance hike, awaiting clearance from the Urban Development Department. Without the GST funds, implementing the hike is almost impossible without eating into emergency reserves.
Ganeshotsav preparations — sanitation drives, road repairs, traffic control, and public facilities — are already underway, but officials admit some activities may be scaled down or delayed if funds don’t arrive in time.
While the government is expected to clear August salaries before the festival, employees remain anxious. “We are not just waiting for salaries, we are waiting for survival of basic civic services,” said an aggrieved NMC insider.
Until the ₹147 crore hits its coffers, NMC’s festive season will be overshadowed by a looming financial storm.
👉 Click here to read the latest Gujarat news on TheLiveAhmedabad.com