Greater Chennai Corporation reduces capital expenditure in Budget 2026-2027

The Greater Chennai Corporation (GCC) will spend less for infrastructure development in the city in 2026-2027. The deficit has increased from ₹378 crore in 2025-2026 to ₹1,602 crore in 2026-2027.

In the ₹9,319 crore GCC budget 2026-2027 presented by the Standing Committee (Taxation and Finance) Chairperson Sarbajaya Das on Wednesday, the civic body has allocated ₹693 crore for storm water drains in 2026-2027 while the allocation was ₹1290 crore in the revised estimates for 2025-2026, utilising funding from the Asian Development Bank (ADB) for Kosasthalaiyar basin in north Chennai and KFW for the southern parts of the city.

The revenue expenditure is estimated at ₹6,146 crore, capital expenditure at ₹2,754 crore and loan repayment is estimated at ₹111 crore for 2026-2027.

The revenue expenditure for 2025-2026 was ₹5,214 crore, capital expenditure was ₹3,191 crore, while loan repayment was ₹213 crore in the period.

Infrastructure spending has reduced in 2026-2027 owing to the completion of flood mitigation projects in areas such as Kosasthalaiyar basin. The ADB-funded projects in areas such as Kosasthalaiyar basin in north Chennai have been completed in many zones of the city. GCC’s own source of revenue is expected to increase from ₹1,615 crore in 2021-2022 to ₹3,666 crore in 2026-2027.

The allocation for bus route roads in 2026-2027 is estimated at ₹725 crore, while the revised estimates for bus route roads in 2025-2026 are ₹312 crore. The work includes footpaths and bus shelters, with funds from State grants including the Tamil Nadu Urban Road Infrastructure Fund, Singara Chennai 2.0, and the Nagarpura Salaigal Membattu Thittam.

The allocation for solid waste management has increased from ₹272 crore in 2025-2026 to ₹323 crore in 2026-2027. This covers the work on bio-mining of the Kodungaiyur dump yard through the Swachh Bharat Mission 2.0, the procurement of sanitation equipment, and infrastructure improvements at landfill sites.

The allocation for bridges has reduced from ₹160 crore in 2025-2026 to ₹130 crore in 2026-2027. Allocation for buildings such as public toilets, schools, community halls, commercial complexes, cow sheds, and urban primary health centres has reduced to ₹400 crore in 2026-2027 from ₹475 crore in 2025-2026.

Special projects, including beach beautification, have received an allocation of ₹85 crore in 2026-2027, when compared with that of ₹157 crore in 2025-2026.

The allocation for the GCC’s Education department, covering 417 schools, is estimated at ₹11.13 crore for procurement of desks, lab equipment, and digital boards in 2026-2027, while the allocation was ₹26.3 crore in 2025-2026.

The civic body has allocated ₹5 crore for the Integrated Command and Control Centre for surveillance cameras and video walls, ₹4.3 crore for Health laboratory modernisation and fogging machines, ₹4 crore for the Mayor’s Special Development Scheme, and ₹1.11 crore for Medical Services to equip modernised maternity hospitals.

The allocation for parks and playgrounds is estimated at ₹28.24 crore, while the allocation was ₹54.34 crore in 2025-2026, as a number of playgrounds in schools were developed during the period.

The allocation for the mechanical engineering department to purchase heavy-duty sanitation vehicles and beach cleaning equipment has also been reduced to ₹25 crore in 2026-2027, when compared to ₹69.33 crore in 2025-2026.