Trichy Corporation Reviews Deficit Budget and Plans Revenue Enhancement
The Trichy Corporation council convened on Tuesday to review key budget announcements and financial statements, following the tabling of a deficit budget for the second consecutive year, which revealed a shortfall exceeding ₹100 crore. The council resolved to strengthen its independent revenue sources to address this financial gap.
Current Revenue Streams and Deficits
Property tax, the civic body's principal own revenue stream, currently accounts for just 29% of its independent income. Out of a total internal generation of ₹614.3 crore, property tax from approximately 2.1 lakh properties contributed ₹176.6 crore. Subsidies and grants formed the largest share at 30%, highlighting a reliance on external funding.
Mayor Mu Anbalagan emphasized that the corporation had been spending a significant sum from the general fund, contributing to the deficit condition. He stated, "Revenue generation is a parameter that will be worked on sincerely."
Strategic Initiatives to Boost Revenue
In a strategic move, the corporation secured a 25.6% stake in the upcoming Tidel Park Trichy project at Panjapur, valued at an estimated ₹462 crore. Instead of selling 14.1 acres of land, the corporation opted for equity holdings worth ₹23.7 crore in exchange for lease rights, aiming to generate long-term returns.
To enhance property tax collection, the corporation plans to survey assessments, particularly for commercial establishments, to ensure taxes are levied appropriately. Mayor Anbalagan noted, "We will survey the assessments, especially the commercial ones, to check whether the property taxes were levied appropriately. The annual property tax revision by 6% is on hold too."
Expanding Revenue Sources Through Infrastructure
The civic body is also focusing on infrastructure projects to widen revenue sources. Plans include commissioning sewage treatment plants (STPs) at Panjapur and Kalkandarkottai, along with providing over one lakh underground drainage (UGD) connections. These initiatives are expected to generate around ₹10,000 per connection through security deposits, adding to the revenue pool.
Additionally, underutilized properties are proposed to be redeveloped as commercial spaces for rent, further diversifying income streams.
Cost-Cutting Measures and Councillor Perspectives
K Suresh, a CPI councillor, highlighted cost-saving efforts, stating, "Implementation of solar power parks and rooftop solar plants minimized the electricity bills of the corporation by up to ₹7 crore in the last four years. More such projects can curtail expenditure."
Some councillors, including Congress's V Jawagar from Ward 2, argued that the deficit budget should not be viewed as a setback. LIC Sankar, councillor from Ward 20, added, "Expected revenue was not fetched from newly built commercial complexes and markets. Revenue generation is important and must be emphasized. Completed infrastructure projects like Panjapur KKBT should generate more revenue for the city."
The review underscores Trichy Corporation's commitment to addressing financial challenges through innovative revenue strategies and efficient resource management.
