Chennai, July 22: The Tamilaga Vetrikazhagam (TVK) government has ordered a comprehensive reassessment of the costs associated with 90 projects announced in the Greater Chennai Corporation’s 2026-27 budget. Concerns have arisen that the estimated costs for several initiatives may significantly exceed current market prices.
This decision follows an initial investigation into a proposal for purchasing printers for the corporation’s schools. The budget allocated ₹60 lakh for acquiring printers for 100 schools. However, after the TVK government took office, this procurement was completed for just ₹22.12 lakh, resulting in a savings of ₹37.78 lakh.
In light of the substantial discrepancy between estimated and actual costs, the government has initiated a review of other projects included in the budget. Reports indicate that officials have been instructed to reassess the costs of all 90 projects.
The aim of this review is to determine whether the allocated amounts align with current market rates and whether public funds have been budgeted appropriately. Each project will undergo individual scrutiny to identify any potential overestimations in costs, with revised estimates established if necessary.
The government will also evaluate whether the original financial estimates for the projects were reasonable before approving any further initiatives.
This development presents a new challenge for Chennai’s Mayor R. Priya, as the projects under review were proposed during the previous administration’s budget for the Greater Chennai Corporation for 2026-27.
Significant changes in cost estimates could impact project implementation, fund allocation, and timelines. The budget presented in February projected an income of ₹7,717 crore and expenditures of ₹9,319 crore, resulting in a fiscal deficit of ₹1,602 crore.
Additionally, the budget indicated that the corporation is repaying approximately ₹2,000 crore in loans from various financial institutions, including the World Bank and Japan Development Bank, incurring an annual interest payment of ₹95.20 crore.
Key projects announced in the budget include ₹200 crore for developing a 50-kilometer safe corridor around corporation schools, ₹100 crore for the restoration of 30 water bodies, ₹60 crore for the scientific renovation of 60 parks, and ₹55 crore for constructing flood protection walls along the city’s waterways.
The outcomes of the review will determine whether these projects will proceed with revised cost estimates. The government aims to ensure greater transparency, financial discipline, and improved utilization of public funds in Chennai’s urban development programs.
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