NMC Awaits Rs7,500 mn For Infrastructure And Rs1,470 mn GST Grant
The Nagpur Municipal Corporation (NMC) is facing a financial crunch as it awaits Rs 7,500 million from the state government for infrastructure development and Rs 1,470 million as GST compensation grant.
Due to the delay in receiving these funds, the civic body is struggling to manage its day-to-day expenses, including salaries, pensions, electricity bills, and payments to contractors.
Officials indicated that the delay in GST compensation is not new and similar delays have occurred earlier, impacting the corporation’s financial stability.
With funds yet to be released, the NMC may have to divert money allocated for development works to meet essential expenses, which could slow down ongoing infrastructure projects.
After the implementation of GST, municipal corporations depend on state governments for compensation in place of earlier local taxes like octroi.
The pending funds are crucial for maintaining civic services and continuing infrastructure projects in the city.
