Nashik Civic Body Seeks Higher GST Grant from State Amid Financial Crunch
The Nashik Municipal Corporation (NMC) has urged the Maharashtra government to increase the annual rise in GST compensation grants from 8% to 15%, citing severe financial stress and growing infrastructure demands.
Currently, the civic body receives around Rs.124.8 crore per month as GST compensation, amounting to nearly Rs.1,497 crore annually. However, officials stated that the amount is insufficient to support the city’s development requirements.
Corporators have proposed development works worth nearly Rs.10,000 crore, but only about Rs.100 crore could be allocated in the present budget. The civic body also highlighted that nearly 70% of roads in Nashik have not been resurfaced for over a decade due to lack of funds.
NMC officials stated that the city has a road network of around 2,500 km and approximately Rs.1,000 crore is needed for major road repairs and relaying work.
The state government has asked the civic body to submit details of revenue earned under the earlier octroi and Local Body Tax (LBT) systems before considering the demand for increased GST compensation.
