The state government has withheld the March GST grant to all municipal corporations in Maharashtra, leaving Nagpur Municipal Corporation (NMC) short of ₹147 crore. The fund crunch has created a financial crisis, with payments for salaries, pensions, contractor dues and other essential expenses now under strain.
Before GST, corporations received fixed monthly income through LBT. After GST, the state made it mandatory to release grants by the 4th of every month. However, in 2025-26, the second instalment was withheld. At the start of this financial year, grants for April and May were also held back. Now, withholding March grants has further complicated NMC’s finances as it prepares its annual balance sheet.
NMC currently receives ₹147.66 crore monthly as GST grant. In 2026-27, this amount is expected to rise to ₹159 crore per month, according to Sadashiv Shelke, Chief Finance and Accounts Officer, NMC.
Across Maharashtra, a total of ₹2,571.06 crore in GST grants remains unpaid to municipal corporations. Mumbai has taken the highest hit at ₹1,200 crore.
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