Panaji: The department of urban development has announced a scheme to provide an annual grant of Rs 70 lakh for Class C municipalities to meet their operational and administrative expenses, including salaries and pension benefits.Grants will be equivalent to actual staff salaries and pension, but not more than Rs 50 lakh per annum for salaries and Rs 25 lakh per annum for pension.An official said the smaller councils face problems due to a lack of strong revenue sources and reliance on govt grants to meet their other expenses.He further said that due to financial constraints, these councils sometimes cannot pay salaries on time. Pension disbursement is also affected, causing insecurity among employees. Smaller municipalities perform functions like larger councils but lack financial security.The scheme aims to help weaker councils pay salaries and disburse pension benefits of retired employees on time, ensuring financial stability. While the scheme will be valid for five years, it will be revised based on financial conditions.
