Shimla: Amid noisy protests and a walkout by BJP councillors, Mayor Surinder Chauhan, supported by Deputy Mayor Uma Kaushal, on Friday presented a record budget of ₹688 crore in the House of the Shimla Municipal Corporation.
The Mayor announced an increase in property tax, water charges and garbage tax, triggering sharp reactions from councillors and residents alike.
Citing recommendations of the Central Finance Commission, Chauhan said property tax would be enhanced in line with the State Domestic Product growth rate. He indicated a hike of around 6–8 per cent, effective from April.
Last year, the MC had raised property tax by 7 per cent.
According to the Corporation, Shimla has around 35,500 property owners, and the entire property tax target was achieved this year.
The MC is also expecting a grant of nearly ₹10 crore, the Mayor informed the House.
In another major announcement, garbage tax will be increased by 10 per cent, while water charges will go up by 8 per cent this year.
The hikes have already sparked public resentment, with councillors warning that such across-the-board increases could have political repercussions in the coming years, even if elections are not immediate.
BJP councillors raised a ruckus in the House, questioning the timing and burden of the hikes.
The Mayor said the MC has set a recovery target of around ₹4 crore from defaulters. He added that a property survey is underway across the city, with work completed in more than 30 wards so far.
Chauhan also said that under the ducting project on the The Mall Road, all service providers would be charged fees, which would add to the Corporation’s revenue, though no specific figure was disclosed.
Calling the ₹688-crore budget one of the highest in recent years, the Mayor contrasted it with last year’s budget of about ₹180 crore. In 2017, when the CPI(M) headed the Corporation, the budget stood at around ₹401 crore.
The Mayor claimed that all budget announcements would be implemented on the ground. He said a modern Nigam Parisar would be constructed at a cost of ₹140 crore, which has already been sanctioned.
The MC has also received a ₹50-crore challenge fund, under which projects such as a shopping mall and cinema complex are proposed to generate additional income.
Further, a wellness centre will be built at Tara Devi at a cost of ₹66 crore on about 87 bighas of identified land, while a residential colony for MC employees has been constructed at a cost of ₹35 crore.
BJP Councillors claimed Mayor has no legibility as his term was only for two- and- half year, his extension by the Sukhu government was illegal.
Despite the disruptions, the budget was formally presented in the House, marking a high-stakes financial roadmap for the city amid political confrontation.
