Haryana Municipal Elections: How Are the Cities Performing Financially?

Haryana municipal elections have been won by the BJP which is in power in the state. How are the municipalities of Haryana faring?

For the 9 out of the 10 municipal corporations that we have data for, the performance is mixed. The data is based on financial results for FY 23.

• 6 out of the 9 MCs have revenue surplus.
• Gurgaon MC has posted a revenue deficit for FY 23. Gurgaon is one of India's richest cities and the MC needs to perform better.
• Panchkula and Sonepat MCs also have revenue deficits.
• The MCs have a low level of own revenues - less than 40% . They are heavily dependent on grants and assigned revenues from the state. Only Karnal and Gurugram MC have significant own revenues.
• The accounting quality and financial reporting standards of the MCs of Haryana are below par.

While the BJP has secured victory in Haryana's municipal elections, the financial health of the municipalities presents a mixed picture. The heavy reliance on state grants and weak own revenue generation highlight the need for stronger fiscal autonomy and better financial management. Cities like Gurgaon, given their economic strength, must improve their municipal finances to ensure sustainable urban development. More transparency, better financial reporting, and enhanced revenue strategies will be key to strengthening Haryana's municipalities in the years ahead.