Bhopal News: MP Government Tightens Grip On Mayor’s Fund In Municipal Corporations

Bhopal (Madhya Pradesh): Municipal Corporations and municipal administration came face to face on Friday after the Madhya Pradesh government on Monday directed all municipal corporations in the state to avoid allocating funds under the Mayor’s Fund while preparing their annual budgets, stating that there is no legal provision for such a fund under the existing municipal laws.

The Urban Administration and Development (UAD) Department issued the directive earlier this week, instructing municipal commissioners to strictly follow the provisions of the Madhya Pradesh Municipal Corporation Act, 1956, and the Madhya Pradesh Municipal (Accounts and Finance) Rules, 2018 while drafting their budget proposals.

Government cites lack of legal provision

In a letter addressed to municipal commissioners across the state, Deputy Secretary Pramod Kumar Shukla clarified that several corporations have been including a provision for the Mayor’s Fund in their annual budgets despite the absence of such a provision in the legal framework.

According to the department, Chapter 7 of the Madhya Pradesh Municipal Corporation Act, 1956 outlines the structure and management of municipal finances, including the preparation of annual estimates of income and expenditure.

However, the Act does not mention any provision for a Mayor’s Fund. The department has therefore instructed all municipal bodies to adhere strictly to statutory financial provisions and avoid including allocations that are not supported by the Act or related rules.

BMC chairman seeks clarification

Reacting to the directive, Bhopal Municipal Corporation (BMC) Chairman Kishan Suryavanshi said municipal corporations are autonomous bodies and decisions regarding fund allocations are taken internally.

“We are unable to understand why this order has been issued, particularly regarding the Mayor’s Fund. The matter will become clear only after discussion with the government,” he said.