MADURAI: The Madurai City Municipal Corporation has projected an overall deficit of Rs 8.87 crore in its budget for the financial year 2026–27, reflecting continued stress on the civic body’s revenue finances despite higher capital receipts and grants.
Mayor (in-charge) T Nagarajan, who chaired the event, tabled the budget for 2026-27 on Tuesday. Notably, this was the first Corporation Council meeting to be held since the resignation of Mayor Indrani Ponvasanth in October 2025 after a row over tax irregularities.
The corporation outlined a total income of Rs 1,450.44 crore, including Rs 499.15 crore from various state government schemes and Rs 83.55 crore raised as loans for specific projects. The total expenditure for the year has been pegged at Rs 1,459.31 crore, resulting in the projected deficit of Rs 8.87 crore.
A major focus of the 2026–27 budget is on strengthening core urban infrastructure. Among the proposed announcements for the ensuing year, the corporation has proposed the rehabilitation of drinking water pipelines laid under the Vaigai Integrated Drinking Water Scheme, along with the renovation of a 118 MLD capacity water treatment facility. Detailed proposals worth Rs 542.65 crore have been prepared and submitted, with works slated to be taken up during the financial year.
In line with an announcement by the Chief Minister M K Stalin, the civic body has also planned large-scale renovation of underground sewer lines in and around the Arulmigu Meenakshi Amman Temple area. The project, estimated at Rs 450 crore, is expected to receive administrative sanction in 2026–27, following which execution will begin.
Flood mitigation has been identified as another priority area. Proposals have been drawn up to renovate existing stormwater drains and construct new drains across all 100 wards in five phases. The corporation said steps are being taken to obtain administrative approval, with implementation planned during the year.
On the healthcare front, a new dialysis unit will be established at the Ansari Nagar Primary Health Centre in Zone I from 2026–27. In addition, a “Hospital on Wheels” scheme will be launched in partnership with private hospitals to provide specialised medical services directly to residents of suburban and underserved areas.
The budget also includes several initiatives aimed at improving education in corporation-run schools. From the 2026–27 academic year, cash incentives will be provided to students securing first rank in Class X and Class XII State board examinations. Virtual laboratories will be set up in one school each in the four corporation zones through private corporate social responsibility (CSR) funding. Smart boards will be installed in all classrooms using CSR funds, all corporation schools will be painted in a uniform colour, and identity cards will be issued to students.
On the expenditure side, the corporation has earmarked Rs 348.87 crore for establishment and administrative costs, Rs 325.68 crore for operation and maintenance, Rs 28.61 crore towards bank interest, Rs 553.27 crore for capital works, and allocations for various local body fund shares related to general, water supply and drainage sectors. Loan repayment during the year is estimated at Rs 70.67 crore.
Ahead of the meeting, Mayor (i/c) Nagarajan thanked the chief minister for erecting a statue for Karl Marx in the state. Nagarajan requested the CM to consider erecting statue for CPM leader and freedom fighter N Sankaraiah in Madurai.