Mayor S. Nagarathinam (second left) receiving the budget for 2026-27 from the members of Finance Committee in Erode in Tamil Nadu on Thursday.
| Photo Credit: GOVARTHAN M.
Erode Mayor S. Nagarathinam on Thursday (February 26, 2026) presented a ₹4.94 crore surplus budget for the financial year 2026–27. The total estimated revenue and capital receipts stand at ₹519 crore, while the projected expenditure is ₹514 crore.Presenting the budget in the presence of Corporation Commissioner Arpit Jain, Deputy Mayor V. Selvaraj, councillors and officials, the Mayor said the estimated revenue from various taxes would be ₹286.14 crore. This includes ₹97.70 crore from property tax, ₹87.50 crore through subsidies, ₹51.81 crore from service charges and ₹12.14 crore from income generated through the civic body’s properties.On the expenditure side, the Mayor stated that salaries for Corporation staff are estimated at ₹112.49 crore, while pension commitments are projected at ₹22.16 crore. Maintenance and repair of various schemes are estimated to cost ₹113.03 crore, and interest payments on borrowings are pegged at ₹14.69 crore. The total revenue expenditure is estimated at ₹288.56 crore. The budget also outlines the progress of development schemes undertaken by the civic body.Following the presentation, councillors from both the DMK and the AIADMK questioned the urgency in floating a ₹10 crore tender for the maintenance of water pipelines. They alleged that the seven-day short-term tender was issued without informing councillors or displaying details on the notice board, raising concerns over transparency. Councillors accused officials of sidelining elected representatives and failing to ensure transparency in the tender process.Responding to the allegations, the Corporation Commissioner said due procedures were followed in issuing the tender and maintained that it could not be cancelled. While he asserted that transparency was upheld, DMK councillor S. Nandagopal (Ward 47) alleged irregularities in the tender process.The City Engineer clarified that the tender would be awarded only after a resolution is passed in the council meeting. However, councillors pointed out that in view of the ensuing Assembly elections, council meetings may not be held for the next two months, and questioned how work orders would be issued in the interim. They further alleged that a particular contractor had already been chosen and criticised the administration for refusing to cancel the tender.Leader of the Opposition S.D. Thangamuthu questioned why taxes had not been reduced despite a resolution passed a year ago. He also opposed Agenda No. 3, which sought permission to establish a new cattle shandy. Referring to Agenda No. 38, councillors said a proposal to increase fines for unauthorised constructions ahead of elections would create unease among the public and demanded its withdrawal.Amid strong protests over these issues, AIADMK councillors staged a walkout from the meeting. Published - February 26, 2026 06:28 pm IST
