BJP flags deficit, mayor points to Rs 350 crore due from union govt

R Priya said the corporation had already implemented a 6% annual increase in property tax, as mandated by the Central Finance Commission (CFC), a key condition for availing central grants.
Rippon Buildings on Friday sported TN’s hashtag on alleged delimitation
Rippon Buildings on Friday sported TN’s hashtag on alleged delimitation Photo | Ashwin prasath
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CHENNAI: During the Greater Chennai Corporation (GCC) budget estimate 2025-26 discussion held at the Ripon Building on Friday, Mayor R Priya criticised the union government for failing to release Rs 350 crore in central grants owed to the civic body.

When BJP councillor Uma Anandhan raised concern over the GCC’s continuous deficit budgets and noted that the recurring shortfall would strain the corporation’s loan repayment capacity and hinder capital expenditure, Priya said the GCC is currently relying on its own-source of income and support from the state government as centre is yet to release the funds.

She said the corporation had already implemented a 6% annual increase in property tax, as mandated by the Central Finance Commission (CFC), a key condition for availing central grants. “However, despite adhering to the requirement, the promised funds have not been disbursed. Had the funds been released, there would be no budget deficit,” Priya said.

Uma Anandhan also accused the state’s ministers and MPs of skipping central finance meetings, alleging that they raise concern about fund delays without attending discussions. Priya dismissed the claim as false. When majority of councillors raised concerns despite the increase in the ward councillors’ fund from Rs 50 lakh to Rs 60 lakh, claiming that the amount was insufficient as notable portion goes towards GST, Uma Anandhan said she would speak to Union Finance Minister Nirmala Sitaraman during her visit to Chennai on the possibility of waiving GST.

Councillors from VCK, CPI, CPM and MDMK raised concerns over the proposed establishment of a waste-to-energy (WTE) plant at the Kodungaiyur dump yard. CPI councillor M Renuka questioned why the Kodungaiyur dump in North Chennai should bear the burden of such a hazardous plant when the Perungudi dump in south Chennai is being processed solely through bio-mining. “It is not an economically and environmentally friendly project,” she said.

Mayor R Priya chairing a GCC meeting 
held on Friday | Express
Mayor R Priya chairing a GCC meeting held on Friday | Express

MDMK councillor S Jeevan said the International Finance Corporation, the private lending arm of the World Bank, withdrew its $40 million funding for WTE plants in Gujarat following backlash from environmental groups and civil society organisations over pollution. He warned that the upcoming WTE plant should not become the next Sterlite project.

Similarly, AIADMK councillor K Karthick said that while the budget includes initiatives for middle, high and higher secondary schools, it fails to address primary schools. He noted the need to introduce welfare initiatives for primary school students.

AMMK councillor V Giridharan while welcoming GCC’s initiative to introduce geriatric care centres in UPHCs, highlighted the continuous shortage of doctors in many UCHCs and UPHCs. In response, GCC Commissioner J Kumaragurubaran said 150 doctors would soon be appointed on deputation-basis.

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