Salem Corporation’s Budget deficit increases multifold in 2026-27

Salem Corporation’s Budget deficit increases multifold in 2026-27

The Salem Corporation’s Budget deficit increased multifold in 2026–27 compared with the past years.

On Thursday, Salem Mayor A. Ramachandran presented the Corporation Budget for the year 2026-27. The Mayor presented a ₹35.85-crore deficit Budget for this year, which surprised many. Because, Salem Corporation Budget deficit for the year 2023-24 was ₹1.26 crore, for 2024-25 it was ₹1.53 crore, and for 2025-26, the Budget deficit was ₹1.26 crore. Compared with the past three years, the Budget deficit has increased multifold.

As per the 2026-27 Budget, the revenue receipts are ₹655.55 crore (₹488.93 crore as a general fund, ₹145.10 crore as water supply and drain fund and ₹21.52 crore as primary education fund). The capital receipts are ₹110.86 crore (₹90.86 crore for the general fund and ₹20 crore for the water supply and drain fund). The expenditure is ₹802.26 crore (revenue expenditure of ₹474.33 crore and a capital expenditure of ₹327.93 crore).

Opposition leader in Salem Corporation N. Yadhavamoorthy (AIADMK) said that this is the first time that Salem Corporation presented a Budget with this much deficit. The Budget is not useful for people. The Corporation spent funds without proper planning. It increased all the taxes, but still it presented a deficit Budget. The Corporation did not take steps to rent the buildings that were constructed under the Smart Cities Mission in Salem Corporation. Without doing work, the Corporation allegedly paid bills for the contractors and corruption was allegedly rampant in the Corporation and due to this, the deficit has increased, Mr. Yadhavamoorthy added.

Salem Corporation officials said the Corporation has to pay retirement benefits to the tune of ₹16.81 crore for the staff members who retired from November 1, 2024. Likewise, the PF amount of ₹21.81 crore was deducted from the staff’s salary from 2016 to 2023, and ₹31.81 crore deducted from the staff comes under the contributory pension scheme, with a Corporation contribution of ₹51.68 crore to be paid. Likewise, the power bill to the tune of ₹148.29 crore is to be paid and bills to be paid to contractors stand at ₹59.66 crore. The Salem Corporation’s total liabilities stood at ₹345.91 crore. So the Budget deficit increased, the officials added.