Freeze on property tax hike hits Chennai Corpn’s coffers

According to the budget estimates, the civic body had estimated a total expenditure of Rs 6,466.13 crore during 2021-22 against revenue of Rs 5,911.51 crore that includes opening balance of Rs 18.58 crore. Last fiscal, it had passed Rs 538.17 crore deficit budget but the revised estimates resulted in a surplus of Rs. 18.58 Crore.

For the first time in three years, the revenue generated through property tax, rents, collection of charges and government allocations was estimated to decrease. The civic body estimates Rs 2,935 crore revenue receipt, while revenue expenditure is estimated to be Rs 3,481.83 crore.

Of the estimated revenue receipt estimated, Rs 1,142.02 crore would be tax revenue. In 2019-20, it had earned Rs 2,678.49 crore and estimated it to be Rs 3,081.21 crore in 2020-21 budget estimate. But this was revised to Rs 3,201.07 crore.

The budget pointed out that revenue receipt decreased as the property tax revision has been withheld. For 2020-21, property tax collection was estimated at Rs 700 crore but was revised to Rs 550 crore. The Corporation is reassessing the underassessed buildings using GIS technology, estimating to collect Rs 600 crore, while professional tax collection has been estimated at Rs 500 crore.

The salary and pension outgo is expected to increase to Rs 1,758.24 crore, up from Rs 1,494.78 crore in 2020-21.

Among the Corporation departments, storm water drain department will have a lion’s share of Rs 1,077 crore, of which Rs 1,000 crore will be from Asian Development Bank, German Development Bank and Smart City Mission. In 2020-21, Rs. 847.50 crore was allocated for storm water drains.

Also, Rs 168.50 crore was allocated for paying interest against the loans availed by the civic body.