Southern States
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Tamil Nadu-Chennai
Corporation in dire straits
By Saptarshi Bhattacharya
CHENNAI, DEC. 9. The Chennai Corporation's financial crunch is so severe that it is unable to fund many of its capital works planned for the next few months.
Payment of bills to various contractors to the tune of Rs. 7 crores is due, even as the civic body struggles to carry out several development works announced in the budget for 2001-2002.
Also, maintenance of vehicles, especially those used for conservancy work, has been badly hit as the civic body has run out of its maintenance fund for purchase of spare parts.
However, some of the capital works, whose execution had been suspended till now, have been resumed. Patch work is being carried out on roads battered by rain. An allocation of about Rs. 1.75 crores has been made.
The payment of retirement benefits to many of the Corporation employees, who retired after July 1, is also due. Enquiries reveal that 104 employees who retired between July 1 and November 30, have not received their gratuity or pensionary benefits.
The only saving grace is that the Corporation received Rs. 3 crores from the Government last month. But it is still awaiting its share of stamp duty surcharge and other incentives from the Government for the second quarter of the current financial year.
At a time when political equations at the Ripon Building are in a fluid state, the prevailing crisis of sorts is being viewed by the city residents with some anxiety.
Some councillors criticise the Mayor, Mr. M.K. Stalin, for not having represented adequately to the Government for immediate release of the funds due to the Corporation.
The Corporation is to receive Rs. 20.99 crores as stamp duty surcharge which is awaiting nod from the Finance department. In addition, the grants of both the Central and State Finance Commission, amounting to nearly Rs. 27 crores, and small savings incentive of Rs. 11.44 crores are yet to arrive.
To tide over the prevailing crisis, the Corporation has asked its zonal-level revenue officials to step up the property tax collection drive.
The tax collection, after showing a steady average inflow of over Rs. 20 crores since July, slumped to Rs. 3 crores in October thanks to the local bodies elections.
The low collection upset the civic body's financial balance as many of the bills payable to contractors remained outstanding.
An allocation Rs. 16 crores-Rs. 18 crores is necessary every month to meet the overheads including salaries and other monetary benefits to its employees, says a senior official of the Corporation.
Against a target of Rs. 232 crores this financial year, the revenue officials have already collected more than Rs. 80 crores by way of Property tax. In the course of the next four months, a monthly collection of about Rs. 35 crores is required to meet the target.
The capital outlay for the current financial year has been fixed at Rs. 160 crores.
The citizens understand the plight of the Corporation when the State Government itself is in a grave financial crisis but they want the Local Administration Minister, the Mayor, the Deputy Mayor, and the new Commissioner to forget whatever differences they may have, and, instead, pursue the people's agenda vigorously.
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