Tamil Nadu local bodies face severe funds crunch

Chennai: Ahead of civic polls, local bodies in Tamil Nadu ranging from municipal corporation to a town panchayat have one thing in common – shortage of funds.

The cash-strapped local bodies including Chennai corporation are now awaiting funds from the state and are working overtime thinking about their revenue receipts.

For instance in Chennai, the corporation’s payment arrears towards its contractors estimates to more than Rs 100 crore as on date. Informed sources with local administration department, blamed political decisions for the current scenario of fund paucity prevailing among civic bodies. “For the past six years, property tax had not been revised in the state. In case of Chennai, the proposal to revise property tax is pending for more than ten years,” said a senior government official explaining that the per capita expenditure spent by all the local bodies ranging from municipalities to city corporation has increased by around 70 per cent.

“An urban local body has to spend more than Rs 3,000 as it per capita expenditure, but where is the revenue coming from,” the official said. “To bale out, electricity and transport departments there have been increase in electricity bills and bus ticket prices, but the same courtesy was not extended to local bodies. Elected representatives always controlled local bodies affecting revenue generation process,” said another highly placed official hinting that after the current financial year, the policy makers are likely to push for a tax revision to bail out local bodies.

At present there is a shortage of staff in all the civic bodies and provision of salary is an issue. Until the local bodies sustain on their own funds, large-scale improvisation will be difficult, the official added.