MCC faces cash crunch as State dumps wage burden onto ULBs
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MCC faces cash crunch as State dumps wage burden onto ULBs

April 6, 2025

Mysuru: The Mysuru City Corporation (MCC), already grappling with severe financial constraints, has been dealt another blow with fresh directives from the State Government that further strain its dwindling resources.

Despite completing various civic projects years ago, MCC still owes hundreds of crores of rupees in pending payments to civil contractors.

Now, a circular dated Mar. 18 from the Directorate of Municipal Administration has directed all Urban Local Bodies (ULBs) to meet key financial obligations — such as wages of cleaners, loaders and other contract workers — entirely from their own sources of revenue.

In a follow-up order issued on Mar. 20, the Government further instructed ULBs to pay salaries of permanent employees based on the 7th Pay Commission recommendations, using funds from the 15th State Finance Commission (SFC) corpus. This is to be implemented only after revising local taxes.

These back-to-back directives come at a time when MCC is already struggling to maintain basic civic services, including underground drainage maintenance, road repairs, park and crematorium upkeep, street lighting, garbage clearance, disbursement of welfare benefits to senior citizens and specially-abled persons, reimbursement of medical bills for civic workers, maintenance of its main office and nine zonal offices and payments towards rented MCC vehicles.

The latest government order, requiring MCC to bear wage expenses for loaders, cleaners, drivers and other staff from its income, has pushed the civic body to the brink of a deepening financial crisis.

The Government order directing local bodies to pay employee wages from their resources is a glaring sign of the State’s financial bankruptcy. It is ironic that the same Government, which has increased the cost of essentials like milk, petrol, diesel and liquor, making life harder for the common man, has emptied the State Treasury to fund its guarantee schemes. Now, it doesn’t even have money to pay its employees. —Shivakumar, Former Mayor

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