Chandigarh Admin Faces ₹537 Crore Loss: CAG

Chandigarh : The recent CAG (Comptroller and Auditor General) report has revealed that the Chandigarh administration suffered a massive financial loss of ₹537 crore. The report highlights significant gaps in tax collection, where revenues fell short of expectations, yet the government spent the entire allocated budget. This fiscal imbalance points to serious concerns regarding the administration’s financial management and resource allocation.

According to the report, while the budget was fully utilized, the shortfall in tax revenues led to a heavy deficit, raising questions about the sustainability of public finances in the union territory. Several departments and sectors showed poor income generation, causing the overall loss to swell to over ₹500 crore. The audit also identified areas where inefficient spending and underperformance contributed to this financial strain. One major issue flagged by the CAG is the mismatch between planned expenditure and actual revenue collection. Despite ambitious targets for tax recovery and other income sources, the administration could not meet these goals. This gap forced reliance on borrowed funds or other sources to meet budgetary needs, which may impact future financial stability.

The report also pointed to losses incurred in various public service sectors managed by the administration. Inefficient operations and lack of effective monitoring have resulted in wastage of resources and underutilization of assets. These factors collectively have had a detrimental effect on Chandigarh’s fiscal health. Officials from the Chandigarh administration acknowledged the report and assured that corrective measures are being planned to improve tax collection mechanisms and financial discipline. They stressed the importance of tightening tax enforcement and reducing unnecessary expenditure to avoid similar losses in the future. The CAG report serves as a critical wake-up call for the Chandigarh government to adopt more transparent and accountable financial practices. Strengthening revenue channels and optimizing expenditure will be essential to restore fiscal balance and ensure sustainable growth for the city. As Chandigarh continues to develop as a key union territory, managing its finances prudently will be vital to meet public demands and maintain infrastructure without burdening taxpayers.