Chennai: Greater Chennai Corporation between April and July collected 130 more crore in property tax than in the same period last year.
But the bank’s overdraft increased, from 250 Crores (in 2018) to 450CR (in January 2021), contributions to contractors were 200Cr and the debt rose from 2,200 crores to 2,500 crores.
This means that projects funded by capital funds in education, health care and solid waste management will take back seats as happened for more than eight years.
Posting 2014, ‘expenditures’ on the project and take a big loan for large ticket projects that are not good in quality or improve the lives of citizens have caused this financial crisis, activists said.
Corporate income comes from property tax (720 crore), professional tax (350cr) and around 720 crores, financial and state commission grants other than 19 crores as a trade license update and 240 crore, rent and other user fees.
Although there is no major income mechanism that has been made in the last 10 years, projects such as smart parking and ‘parking on the road’ are stuck because of Covid.
Revision Rollback Property Tax in February 2020 took great victims on finance.
“At present, pay 80 crore-100 crore in a salary every month is the duty of Herculean, with 10 crores for interest payments.
The bank’s overdraft has passed 500Cr.
We increased slightly in 2019 after a tax revision but returned to where we were where we were 2018, “said an official.
Activists say the corporation has announced a large ticket package taking large loans from external agents.
“Some important projects but the way they are given and implemented that places a large financial burden,” said Jayaram Venkatsan from Arappor Iakkam, an anti-graft NGO.
“Most of the sewers and new roads scrape every year regardless of the 3-year maintenance period,” added Venkatsan.
A former IAS official who works with the company said there were many ways the civic body could improve its finances instead of using cost cutting.
“Many recommendations have lied since 2009,” he said.