Gujarat’s municipalities are grappling with a deepening financial crisis, collectively burdened with dues of ₹14,774 crore. According to official data, 147 local bodies are struggling to manage even essential services such as water supply, drainage, and street lighting.
More than 120 municipalities have defaulted on electricity payments for streetlights, with outstanding bills alone reaching ₹4,175 crore. In many cases, civic bodies have resorted to loans to cover these expenses, only to fall behind on repayment schedules.
Experts attribute the crisis to poor tax recovery, political leniency in enforcing dues, and the absence of alternative revenue streams. Heavy reliance on state government grants has left most municipalities cash-starved, severely restricting their ability to deliver basic civic services.
The worst-hit municipalities include Viramgam, Dhandhuka, Dholka, Botad, Patan, Visnagar, Palanpur, Bhuj, Ankleshwar, Dabhoi, Dahegam, Himmatnagar, and Unjha—each with unpaid dues of over ₹150 crore.
Officials caution that if the situation continues unchecked, the mounting financial burden could push municipalities to the brink, leaving streetlights dark, taps dry, and drainage systems neglected.