Chennai corporation’s Rs 9,000crore budget focuses on transport, commute and tourism

CHENNAI: The Greater Chennai Corporation (GCC) on Wednesday announced a Rs 8,900crore budget expenditure, its highest so far, with a focus on commute and tourism, unlike previous years when its priorities were only roads and stormwater drains.

The corporation’s revenue for the year was Rs 8,557 crore, leaving a deficit of Rs 343 crore, which is higher than the Rs 137 crore from last year. The civic body’s budget expenditure saw a Rs 500 crore rise from last year’s Rs 8,405 crore, with the property tax target as the prime driver, set at Rs 2,450 crore, up by Rs 150 crore.


Stamp duty surcharge also rose by Rs 50 crore from last year, with revenue pegged at Rs 450 crore, while the state finance commission is expected to give GCC Rs 1,350 crore, an increase of Rs 150 crore.




Despite meagre revenue trickling in, GCC managed to focus on newer areas of development such as commute, where the bus route roads dept saw a doubled allocation of Rs 725 crore. Under this, the corporation will develop pavements, about five bus termini, establish a heritage corridor around St Andrew’s Church, a rope car project in Marina, and multiple EV charging stations.

Despite the marquee announcements for only one category, the corporation still suffers a big financial blow in executing projects for other departments. As much as Rs 5,089 crore (60% of revenue) goes entirely towards salaries, administrative expenses, maintenance and interest payments. The salaries of officials this year rose by Rs 179 crore, further hurting prospects of money being spent on projects.

As a result, several key departments such as education, health, special projects, parks and bridges took a cut compared to last year. The budget was halved for stormwater drains — from Rs 1,290 crore last year, and it was no different for education, parks, and playfields.

Funds for zonal development too were reduced from Rs 984 crore last year to Rs 267 crore this year.

M Birathiviraj, deputy commissioner (revenue and finance), GCC, said, “Many projects, including road re-laying and stormwater drain works, were already completed, making it unnecessary to allocate additional funds to several departments. This is the primary reason for the reduced allocation across various departments.”

“Additionally, numerous development works were undertaken in the previous fiscal year, which led to an increase in revenue expenditure this year. We are focused on improving the quality of infrastructure in the city, and the departments will work together to ensure greater efficiency,” he added.