The recently passed Shimla Municipal Corporation (SMC) annual budget for 2025-26 has drawn sharp criticism from the Communist Party of India (Marxist) [CPI(M)], which has termed it as anti-people and financially burdensome for city residents.

CPI(M) state secretary and former Shimla Mayor Sanjay Chauhan have accused the ruling Congress government of shrinking public funds while simultaneously increasing taxes and service charges.

The budget, presented by Mayor Surinder Chauhan on February 27, includes several fee hikes, which the CPI(M) claims will disproportionately impact common citizens while benefiting private corporations.

Declining Municipal Funds, Rising Public Burden

Chauhan pointed out a drastic decline in the Shimla MC’s budget over the past eight years, despite rising taxes.

“The budget, presented by current Mayor Surinder Chauhan, includes several fee hikes will place an undue burden on the common public while favouring private corporations,” Chauhan said.

Comparing financial allocations across different administrations, he noted that in 2017-18, during the CPI(M)'s tenure, the municipal corporation's income was Rs 401.67 crore, with an expenditure of Rs 357.13 crore. By 2022-23, under the BJP-led administration, income had fallen to Rs 224.30 crore, with an expenditure of Rs 224.14 crore. Under the current Congress-led government, the 2025-26 budget reflects an even sharper decline, with both income and expenditure fixed at Rs 188.35 crore. 

“Despite this sharp budgetary reduction, tax burdens on the people have tripled,” Chauhan added.

Controversial Tax and Fee Hikes

CPI(M) leader Jagat Ram strongly opposed the 10% hike in water and garbage collection charges, calling it unjustified amid rising inflation.

“Water distribution, once under Shimla MC, has gradually been handed over to private corporations like Suez and SJPN, leading to frequent tariff hikes that serve corporate interests rather than public welfare,” Ram said.

He highlighted that the garbage collection fee has also witnessed a massive surge—rising from Rs 37 per month to Rs 142 per month. Additionally, a 4% increase in property tax has further escalated financial pressure on households.

Infrastructure Focus Faces Scrutiny

The Rs 188.35 crore budget also includes allocations under the Smart City initiative, which has drawn criticism for focusing on large-scale commercial and municipal projects rather than immediate public needs.

Among the key allocations, Rs 500 crore has been earmarked for a Smart City multiplex project from Cart Road to Lakkar Bazar. A significant portion of the budget, Rs 70.51 crore, has been allocated for salaries and pensions, accounting for nearly 70% of total expenditure. Rs 60 crore has been designated for the Waste to Wonder Park, while Rs 15 crore has been allocated for a solar lighting project. Additionally, Rs 92.79 crore has been set aside for multi-level parking complexes at locations such as Vikas Nagar and IGMC Auditorium.

Critics argue that while modernization efforts are essential, the budget fails to address immediate concerns such as public welfare, affordable services, and infrastructure upkeep.

CPI(M) Demands Rollback, Warns of Protests

Condemning the budget, Sanjay Chauhan described it as a reflection of neoliberal economic policies, prioritizing corporate profits over public welfare. He called for a rollback of the proposed tax hikes and demanded that water distribution be returned to the Municipal Corporation.

The CPI(M) has warned of city-wide protests if these demands are not met, vowing to mobilize public opposition against policies that transfer essential services into private hands at the cost of the people.