No GST grant for two months

Chhatrapati Sambhajinagar

The municipal corporation receives Rs 32.50 crore every month from the state government as GST compensation. However, the grant has not been released for the past two months. As a result, the corporation initially failed to disburse salaries to its officers and employees. Following protests from staff, the civic body on Thursday released salaries from its own treasury. The amount is expected to be credited to employees’ bank accounts on Friday.

The corporation required Rs 15 crore to pay regular officers and staff. Additionally, more than Rs 6 crore is needed for contractual employees. Every year, the GST compensation from March to May is delayed, and a similar situation has arisen this year. Sources within the corporation confirmed that no grant has been received in the past two months. After waiting, the administration decided on Thursday to release salaries to permanent employees and issued a cheque of Rs 15 crore to the bank. Teachers’ salaries are also likely to be delayed by a day. Contractual employees are paid by manpower supply agencies, which are later reimbursed by the municipal corporation.

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29 Municipal corporations in crisis

With GST grants pending, 29 municipal corporations across the state are facing financial strain. Salaries of lakhs of employees remain unpaid. To decide the future course of action, a meeting of the Municipal Corporations and Municipal Councils Employees’ Federation has been scheduled in Pune on May 9, informed labour leader Gautam Kharat.