Chennai Corporation says work slow due to 250 crore pending from Centre

Chennai: Greater Chennai Corporation (GCC) on Friday attributed the slow pace of development works across the city to the Union government's failure to release 250 crore due to the civic body for the 2025–26 financial year. The issue was raised during the council meeting.During the session, BJP councillor Uma Anandan alleged that the corporation had failed to provide clarity on its financial position.
She pointed out that the estimated budget deficit presented at the beginning of the financial year was 378 crore, but the revised deficit placed at the end of the fiscal year, after completion of various works, stood at 1,669 crore, an increase of nearly 341%."GCC claims that almost 90% of the stormwater drain (SWD) projects have been completed. Yet 250 crore has been allocated for SWD works in this budget. There is a significant variation in the deficit figures over the past three consecutive budgets, but no clear explanation has been provided by the corporation," she said.Responding to the concerns, deputy mayor M Mahesh Kumar said the widening deficit was primarily due to the Union government's failure to release funds to the civic body. "Chennai corporation is yet to receive 250 crore due for the current financial year. Stormwater drain works have been completed only in the core city areas, while projects in the extended zones, including Perungudi, Sholinganallur, Ernavoor and Manali, are still pending," he said.Councillors also raised concerns over lack of allocation for crucial sectors. CPI councillor M Renuka said there was no major allocation for health and education in the 2026-27 budget, especially given the need for additional facilities and improvements in these departments.