Centre withholding 350 cr, says mayor

Chennai: Greater Chennai Corporation joined the fight for funds from Centre, with mayor R Priya criticising Union govt for not releasing 350 crore in grants and aid.
Responding to BJP councillor Uma Anandan's question at the corporation council meeting on Friday on how the civic body planned to address its deficit budget, the mayor said the corporation has increased property tax by 6% to meet the Central Finance Commission recommendations, yet Centre has not disbursed the promised grants and aid. "There would be no deficit if these funds were released. You can get these funds through your party," she told the BJP member.
Priya said GCC got more revenue in property tax, professional tax and stamp duty as mandated by the finance commission. The corporation is functioning on its internal revenue and state funds. GCC's revenue from property tax in 2025-26 is projected to increase by 15% over previous year, professional taxes by 9%, and stamp duty by 33%. GCC projected a 323 crore revenue grant from Centre this year. Against a demand of 110 crore under Swachh Bharat 2.0, the corporation got only 5 crore. This year, it sought 150 crore under the scheme.
CPM councillor R Jayaraman said property tax accounts for about 40% of GCC's 5,145 crore revenue receipt, while 12% came from professional tax, and 23% from state grants. "Our non-tax revenue has reduced by 150 crore. Non-tax revenue would have increased if we got more funds through central grants," he said.
Sarbajaya Das, chairperson of taxation and finance standing committee, said GCC through its internal fund management, has reduced its deficit from 137.5 crore to 68 crore. "We are doing well financially; we will improve further," she said.
Uma Anandan said she would ask Union fnance minister Nirmala Sitaraman to exempt 18% GST on ward councillors' funds and mayor's special funds to help ease financial pressure on the corporation. IUML councillor Fathima Ahmed said such assurances must materialise into action and not just be talk.