CHENNAI: Mayor R Priya announced the Greater Chennai Corporation (GCC) budget for 2026-2027 on Wednesday. Sarbaya Das, chairman of the standing committee, taxation and finance, read out the details.
The Rs 9,319 cr budget saw a deficit of Rs 1,602 crore in 2026-27. Revenue expenditure is Rs 6,146 crore for the upcoming financial year, and Rs 5,214 crore for 2025-26.
The capital expenditure is Rs 2,754.05 crore, and the capital income is Rs 2,517.34 crore. The total revenue expenditure for 2026-27 is Rs 7,717 crore.
The primary source of revenue for the Corporation is property tax. The revised estimate for 2025-26 is fixed at Rs 2,300 crore, which is expected to reach Rs 2,450 crore in 2026-27. Professional tax is estimated at Rs 600 crore in 2026-27
The Bus Route Roads department received the highest allocation, with funding increasing from Rs 311.60 crore in the previous year’s revised estimate to Rs 725.06 crore. This investment supports the construction of new roads, pavement improvements, and bus stop upgrades through state grants such as the TU Road Infrastructure Fund and Singara Chennai 2.0.
The Solid Waste Management department received the second-highest share, rising from Rs 272.52 crore to Rs 323.00 crore. These funds are earmarked for the bio-mining project at Kodungaiyur under Swachh Bharat 2.0, and the procurement of sanitation equipment and landfill infrastructure. Several departments saw a reduction in fund allotments compared to the previous year’s revised estimates.
Funding for the storm water drains (SWD) department was reduced from Rs 1,290.05 crore in 202526 to Rs 693.05 crore in 2026-27. Projects include Kosasthalaiyar Asian Development Bank-funded, Kovalam, German KfW bank-funded, and state disaster prevention works. Allocation for the Buildings department decreased from Rs 475 crore in 2025-26 to Rs 400 crore in 2026-27 for constructing health centres, schools, community halls, and improving Amma Canteens.
Bridges department budgeted at Rs 130.03 crore in 2026-27, down from Rs 160.00 crore in 2025-26, for new bridge construction and widening projects. Electrical department funding dropped from Rs 81.74 crore in 2025-26 to Rs 41.34 crore in 2026-27 for street light installation and school generators.
Mechanical Engineering allocation fell from Rs 69.33 crore in 202526 to Rs 25 crore in 2026-27 for sanitation vehicles and official cars. For the Integrated Command and Control Centre (ICCC), Rs 5 crore was allotted for video walls and additional CCTV cameras. The Education department will use Rs 11.13 crore allocation for laboratory equipment and digital boards, while Public Health was granted Rs 4.30 crore for lab modernisation and mosquito control.
Additionally, Rs 28.24 crore was allocated to the Parks and Playgrounds department to develop open-space parks and gymnasiums. The Special Projects department also received Rs 85.03 crore for initiatives funded by the World Bank and Singara Chennai 2.0 The surcharge revenue allocated to the GCC is fixed at Rs 400 crore in the 20252026 revised estimate. For 2026-2027, this is estimated to be Rs 450 crore.
According to the 2025-26 revised estimate, the State Tax Commission grant is fixed at Rs 1,200.00 crore, rising to an estimated Rs 1,350.00 crore for 2026-27. Other revenues, including trade and building licences, parking fees, and various taxes, are calculated at Rs 1,011.77 crore for 2025-26 and projected to reach Rs 1,190.97 crore in 2026-27. Around Rs 267.11 crore was granted for essential infrastructure and road works across all 15 zones.
Under the councillors’ ward development fund, Rs 120 crore was allotted, and Rs 4 crore was allotted for Mayor’s Special Development. Salaries and pensions for employees are estimated to cost Rs 2,437.40 crore.