The Tamil Nadu government has directed the Greater Chennai Corporation to re-evaluate the cost estimates of 90 projects announced by Mayor R. Priya during the 2026–27 budget. Officials said the move follows allegations that funds were allocated above actual requirements for several works.
The Chennai Corporation’s 2026–27 budget, presented in February, projected total revenue of Rs 7,717 crore and expenditure of Rs 9,319 crore, indicating a deficit of Rs 1,602 crore. Officials also noted that the civic body has borrowed around Rs 2,000 crore from institutions including the World Bank and the Japan Development Bank, paying Rs 95.20 crore annually as interest.
According to officials, the Corporation is facing financial strain, with claims that capital funds were overspent during the previous DMK administration, affecting its ability to manage routine commitments such as salaries. In this backdrop, the government has sought a fresh review of project valuations while maintaining that welfare-oriented schemes will proceed.
Officials cited instances where allocations were allegedly higher than necessary—for example, a flyover that could be built for Rs 300 crore being provided Rs 375 crore. They said contract works worth over Rs 800 crore have been cancelled and taken up for re-estimation.
They also pointed to procurement under the Mayor’s announcements, stating that while Rs 60 lakh was indicated for buying printers for 100 schools, 100 printers were later purchased for Rs 22.12 lakh, resulting in savings of about Rs 38 lakh. The projects will be implemented, officials said, but the sanctioned amounts will be finalised after re-assessing estimates to reduce expenditure and ease the deficit.
