Confusion prevails over ward development funds amid GCC cash crunch

Four years on, questions persist over the proper utilisation of the Ward Development Funds within Greater Chennai Corporation limits. Councillors have sought the immediate release of the allocated funds for 2026-27, before the urban local body elections expected to be held in March 2027. This is to be seen in the context of the Chennai Corporation facing a severe fund crunch and reviewing several tenders.During the council meeting on August 28, 2026, councillors, clad in black, expressed dissatisfaction with the State government and the GCC over the non-disbursal of the Ward Development Funds, or “councillor’s funds”, for the 2026-27 financial year.Watch | Unlikely allies join hands at Chennai Corporation council; DMK asks GCC to consider NULM workers' requestsCouncillors of all political parties, barring the TVK, extended support to the DMK in criticising the State government for not releasing the ward development funds,… https://t.co/dZtVZlUe19pic.twitter.com/NtqrkUulYk— R Aishwaryaa (@AishRavi64) August 30, 2026Yearly breakupThe Ward Development Funds are issued to a councillor from the civic body’s capital funds. In 2022, ₹35 lakh was the maximum amount a councillor could spend under this scheme, which increased to ₹40 lakh the following year, ₹50 lakh in 2024, and finally ₹60 lakh in 2025.The GCC’s Taxation and Finance Committee Chairperson Sarbajaya Das said the funds were not provided upfront. “A councillor needs to submit a proposal for projects under the fund by February, before the start of the upcoming financial year. Accordingly, an estimation is done, and only then will the GCC allot the funds. In 2022, when the Council was elected, many were not aware of the procedure and did not request funds,” she said.Any remaining funds cannot be requested in the next year, she added. But GCC officials said a councillor can write to the Commissioner if they need to avail of the remaining funds from the previous financial year.As per data from the GCC, roughly 25% of the Ward Development Funds were mentioned as “utilised” for the 2026-27 financial year. But councillors said no funds were allocated since the new government took over.A GCC official, however, explained that “utilised” funds referred to bills processed after works were completed, rather than the allocation for that particular year. Thus, the 25% utilisation shown for 2026-27 could include funds from previous years. The annual allocation is expected to be utilised by February, but works take time after administrative sanction and payment is made only when bills are received.The official said there was currently a “liquidity issue” despite budgetary allocations, and the Corporation was, therefore, not ready to take on new commitments.Use of ward fundsAnna Nagar Ward Committee Chairperson K.P. Jain said roughly 90% of his allocation had been utilised, mainly for a ration shop and street name boards. He said issues such as commercial parking, a rampant problem in Anna Nagar, could not be funded under the scheme.Teynampet Ward Committee Chairperson and Chepauk Councillor S. Madhan Mohan said the funds had been used for improving bus stands near Kalaivanar Arangam and adding paver blocks to interior roads, besides a multipurpose hall. “Chepauk is a dense, compact constituency and subject to CRZ regulations along the beach, leaving little space for major building constructions. So, such installations were made,” he noted.When asked for a breakdown of expenses, some councillors across the zones said they had to ask their personal assistants or zonal authorities for the data, although the GCC had provided each councillor with a digital device to access such information.Emergency work on holdDuring a recent Council meeting, Deputy Mayor M. Magesh Kumaar stated that emergency monsoon works, such as repairing damaged roads and missing stormwater drain links, were stalled as ward funds were not allocated in recent months.According to the GCC, these works had already been taken up through other capital funds or grants over the past four years, and committing further funds now would create additional liabilities when there was no money available.Councillors, however, said many small projects were left out while planning large packages, such as the Nagarpura Salai Membattu Thittam (NSMT), which are taken up using Ward Development Funds.Meanwhile, Valasaravakkam Ward Committee Chairperson V. Rajan said, “What councillors referred to as an ‘emergency’ at the meeting is not for floods or the monsoon. We only have a period of six months before the next local body elections. Even if funds are given this month, six months will not be enough for us to float tenders and complete the work,” he said. Councillors often use the fund for name boards, bus shelters, and buildings rather than clean-up drives, for visibility and garnering goodwill, he added.