Huge financial crisis in front of urban bodies

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Bhopal . Municipal elections have been completed. The mayor, the elected representative on the post of president, will now run the city government. During the elections, the candidates have made big promises to the voters. But the manner in which the financial position of Municipal Corporations, Municipalities and Nagar Panchayats is there. It is also possible for urban organizations to pay employees and make necessary expenses from it. So the new councils are coming into existence. It will be very difficult for them to cope with the financial crisis.


Financial condition worsens due to reduction in octroi compensation
In the year 2018, there were 378 urban bodies in Madhya Pradesh. The government used to give a grant of Rs 324 crore as octroi compensation. Out of this amount, the government deducts 21 percent of the amount, pension contribution and electricity. At the same time, the amount of octroi compensation has been paid by the government to the tune of Rs 300 crore. The number of urban bodies has increased from 378 to 413. Now Rs 300 crore will be distributed in 413 urban bodies. Due to which the urban institutions are facing financial crisis. Dealing with the financial crisis will be a big challenge for the newly elected representatives.