Chennai Corporation faces Rs 1,970 crore deficit as cash flow crisis deepens

The Greater Chennai Corporation (GCC) reported an overall deficit of Rs 1,970 crore for the 2025‑26 financial year after principal loan repayments, up from Rs 529 crore the previous year. Revenue collections have remained stable, but operating and capital expenditures have surged, with capital spending reaching Rs 3,551 crore and internal transfers from the revenue to the capital account rising to Rs 937 crore.

The widening gap has forced GCC to rely increasingly on state and central grants, including the Chief Minister’s Integrated Urban Transformation Mission and Urban Challenge Funding, as capital grant support fell sharply from Rs 1,941 crore to Rs 521 crore. Pending contractor bills stand at about Rs 1,929 crore, and anticipated liabilities for 2026‑27 are projected at Rs 1,505 crore. To mitigate the cash‑flow strain, the corporation has launched an intensive property‑tax drive, is mapping tax data to plug leakages, and has sought a ways‑and‑means advance from the Tamil Nadu state government.