TVK govt orders cost review of 90 Chennai Corporation projects announced by Mayor Priya

CHENNAI: The Tamilaga Vettri Kazhagam (TVK) government has ordered a review of the cost estimates for 90 projects announced in the Greater Chennai Corporation's 2026-27 Budget, following allegations that the estimates for several schemes were inflated, as reported by Daily Thanthi. The review was initiated after officials examined the expenditure on one of the projects involving the purchase of printers for Corporation schools.

The civic budget had allocated Rs 60 lakh to procure printers for 100 Corporation schools. However, after assuming office, the TVK government purchased and supplied printers to all 100 schools for Rs 22.12 lakh, resulting in savings of Rs 37.78 lakh. The government reportedly found that the estimated costs of several other projects also appeared to be higher than required.

As a result, the TVK government has directed officials to conduct a comprehensive review of the cost estimates for all 90 projects announced in the Greater Chennai Corporation Budget before further implementation, according to the report.

The review is expected to assess whether public funds have been allocated appropriately and whether the proposed expenditure matches prevailing market rates. The decision has emerged as a fresh challenge for Chennai Mayor R Priya, as the projects were announced during the previous administration's civic budget presentation. Further action is expected after the review is completed.

Highlights of the 2026-27 Budget

The Greater Chennai Corporation's Budget for the 2026-27 financial year was presented in February as a deficit budget. Mayor Priya had announced 90 new development projects, estimating total revenue at Rs 7,717 crore and expenditure at Rs 9,319 crore, leaving a fiscal deficit of Rs 1,602 crore. The budget also stated that the Corporation was paying Rs 95.20 crore annually as interest on loans amounting to nearly Rs 2,000 crore, borrowed from financial institutions including the World Bank and the Japan Development Bank.

Among the key proposals announced in the budget were Rs 200 crore for developing 50 km of safe corridors around Corporation schools, Rs 100 crore for restoring 30 water bodies, Rs 60 crore for the scientific renovation of 60 parks, and Rs 55 crore for constructing flood protection walls along waterways.

Several other civic infrastructure and public welfare projects were also included in the budget, with the Corporation stating that the initiatives were aimed at improving urban infrastructure and public services across the city.