Chennai, July 21 (IANS). The Tamilaga Vetri Kazhagam (TVK) government has ordered a comprehensive re-evaluation of the cost of 90 projects announced in the 2026-27 budget of the Greater Chennai Corporation. The government fears that the estimated costs fixed for many schemes may be much higher than the actual market prices.
This step has been taken after preliminary investigation of a proposal related to purchase of printers for the corporation’s schools.
A provision of Rs 60 lakh was made in the corporation’s budget to purchase printers for 100 schools. However, after the TVK government came to power, the same procurement process was completed for only Rs 22.12 lakh, resulting in a saving of Rs 37.78 lakh.
After such a huge difference between the estimated and actual cost, the government has started examining other projects included in the budget as well. According to reports, officials have been directed to re-estimate the cost of all 90 projects.
The purpose of this review is to find out whether the amount earmarked for the projects is in line with the prevailing market rates and whether the public funds are properly provisioned in the budget.
During the review, each project will be examined individually to identify potential cost overestimates and revise costs, if necessary.
The government will also examine whether the original financial estimates made for the schemes were reasonable before further projects are approved.
This incident was witnessed by Chennai Mayor R. This could pose a new challenge for Priya, as the projects under review were announced in the 2026-27 budget of the Greater Chennai Corporation, presented during the previous government.
If major changes are made in the cost estimates, it may also impact the implementation, fund allocation and timelines of the projects.
The corporation budget presented in February had estimated income at Rs 7,717 crore and expenditure at Rs 9,319 crore, resulting in a fiscal deficit of Rs 1,602 crore.
It was also mentioned in the budget that the corporation is paying Rs 95.20 crore every year as interest on loans of about Rs 2,000 crore taken from various financial institutions, including the World Bank and Japan Development Bank.
Major projects announced in the budget included Rs 200 crore for developing 50 km long safe corridors around corporation schools, Rs 100 crore for revival of 30 reservoirs, Rs 60 crore for scientific renovation of 60 parks and Rs 55 crore for construction of flood protection walls along the city’s waterways.
The outcome of the review will decide whether these projects will proceed with the revised cost estimate or not. The government says it aims to ensure greater transparency, financial discipline and better utilization of public funds in Chennai’s urban development programmes.
–IANS
AMT/DKP