April 4: The Guwahati Municipal Corporation (GMC) is caught between development of wards and payment of its employees’ salaries.

Dispur released an amount of Rs 5 crore last month to the corporation to take up development schemes in 60 municipal wards.

Sources said although the amount is meant for the development projects in the wards, the civic body is in fix as how to utilise the funds.

The GMC Karmi Sangha has already written to commissioner Rajesh Prasad to pay employees’ salaries from the fund. The councillors want the fund be utilised exclusively for the development projects.

“The corporation is facing acute financial crisis and employees never get their salaries on time. The annual income of the GMC has gone down considerably after the closure of the toll gates to collect entry tax from vehicles entering into the city. There is a shortfall of Rs 18 crore between the corporation’s income and expenditure. A major portion of the income isused to provide civic amenities to the residents. If employees are not paid, how can the civic body expect them to work for the public?” the general secretary of GMC Karmi Sangha, Chandan Sarma, asked.

The sangha threatened to go on strike if the salaries of employees for the month of March were not paid before Rongali Bihu.

The councillors, on the other hand, are against the idea of diverting Rs 5 crore. They said all the 60 wards are in a pathetic condition and need immediate improvement.

“The councillors have been demanding funds for the development of wards. The residents of these wards are angry with us for lack of civic amenities. We had requested the government to release the ward development funds on several occasions. Finally, it was released last month. But this tussle is unfortunate. The councillors are accountable to their voters,” a Congress councillor said.

Though a decision on the usage of the Rs 5 crore has not yet been finalised, the commissioner wants to adopt a strategy, which will please both councillors and employees.

“The commissioner wants that the amount should be divided equally for payment of salaries and ward development. Some councillors have given a nod to the strategy considering the fact that disbursement of salaries to the employees is also important to enable the corporation to function smoothly. The councillors do not want a strike on their conscience,” a source said.