VMC council approves revised budget of ₹1.64 lakh crore for 2026-27

Vijayawada Municipal Corporation (VMC) council on Tuesday approved a revised budget of ₹1,643.64 for the year 2026-27, after the YSRCP corporators raised objections to allocation of ₹450 crore for the stormwater drain project.

The tenure of the VMC elected body will end in March, after which the Special Officer would take on the responsibility of the corporation. In the last budget meeting, presented by Mayor R. Bhagyalakshmi, the initial proposed budget was ₹2,093.65 crore, with the total expenditure being ₹2,093.65 crore and the total income being ₹1,968.13 crore respectively.  

However, YSRCP corporators unanimously opposed allocations of ₹450 crore for the stormwater drain project, after which the budget estimates, both capital income and expenditure, were revised.  

Of the ₹600-crore proposed for the project, VMC’s proposed share is ₹150 crore, while Capital Region Development Authority’s (CRDA) share is ₹150 crore and concessionaire’s share is ₹300 crore. The YSRCP corporators rejected the Public-Private-Partnership (PPP) proposal, citing increased burden on the public.  

“Earlier too, Larsen and Toubro was given the contract for completing the project, but they discontinued in between, leaving much work unfinished. Now, once again they talk about handing it over to a private player. Ultimately, the burden will fall on the public,” said YSRCP floor leader Venkata Satyanarayana.   

Among other proposed expenditures, ₹60 lakh has been allocated for shelter homes for homeless people, ₹50 lakh for modernisation of food street, ₹5 crore for development of hill areas in the city, ₹50 lakh for canal beautification, ₹3 crore for road widening projects, ₹50 lakh for footpaths, ₹5 crore for animal birth control operations and establishment of dog centres and ₹4 crore for eradication of mosquitoes.  

TDP floor leader N. Balaswamy, meanwhile, suggested that the allocations for addressing mosquito and stray dog issues be increased to ₹10 crore. The two issues have become subjects of discussion regularly in council meetings.  

No allocation has been made for the Budameru Development Plan this year, while in 2025-26, ₹7.50 crore was allocated for the same. The corporation is not expected to receive funds for the same. 

On the income front, the corporation is expected to receive funds to the tune of ₹100 crore under Urban Reforms Funds, ₹178 crore under the 15th Finance Commission Grants, ₹10 crore under the SASCI (Special Assistance to States for Capital Investment) scheme. It is not expected to receive any funds for pollution control.  

The overall budget points to a trend of increasing borrowings and burden, said CPI(M) corporator B. Satya Babu. He questioned the State government’s lack of funding for the city. There is ₹1,200 crore pending from both State and Centre on various heads of work, he alleged.