AMC Budget Debate Intensifies with Allegations of Regional Bias and Financial Misreporting
Ahmedabad: The second day of discussions on the Ahmedabad Municipal Corporation's (AMC) massive Rs 18,518 crore budget for the fiscal year 2026-27 erupted into controversy as opposition leaders leveled serious accusations of discrimination and financial discrepancies. The opposition claimed that the budget unfairly favors citizens in western areas while neglecting basic amenities in the east, and alleged that the corporation has provided false information regarding its debt obligations.
Allegations of Discriminatory Fund Allocation
Speaking at the general board meeting on Friday, opposition leader Shehzad Khan Pathan highlighted what he described as a stark imbalance in development funding. "On Page 62 of the budget book, Rs 1,112.7 crore is allocated for new development and iconic projects across seven zones," Pathan stated. "Of this amount, Rs 602.11 crore is designated for 18 wards in the western region, while only Rs 510.54 crore is allocated for 30 wards in the eastern region."
Pathan emphasized that this disparity is particularly concerning given the demographic and geographic realities. The eastern region covers 247.45 square kilometers and is home to 65-70% of Ahmedabad's population, whereas the western region spans 233.43 square kilometers with just 30-35% of the population. "There is no objection to providing more funds for the western region, but we are deeply concerned over the significantly lower allocation for the eastern region, which houses the majority of our citizens," he added, arguing that this constitutes clear discrimination in resource distribution.
Debt Underreporting and Financial Irregularities
Beyond the allocation issues, Pathan accused the AMC of grossly underreporting its debt. He presented a detailed breakdown, asserting that as of April 1, 2026, the corporation's debt includes:
- Rs 80.11 crore in government loans
- Rs 354.5 crore in GSFS loans
- Rs 200 crore in green bonds
- Rs 350 crore in GRCP loans
This totals Rs 984.6 crore, with an additional Rs 450 crore in loans planned, bringing the figure to Rs 1,434.6 crore. After accounting for Rs 107.7 crore in repayments during the year, the debt stands at Rs 1,326.9 crore. However, Pathan revealed a critical omission: out of a World Bank loan of Rs 2,465 crore, only Rs 650 crore has been disclosed in the budget documents.
"This debt has been underreported by a staggering Rs 1,815 crores," Pathan declared. When factoring in the World Bank loan and other obligations, the AMC's actual total debt balloons to Rs 3,141.88 crore, significantly higher than the figures presented to the board and the public.
Additional Governance Concerns
Compounding the financial allegations, Pathan also pointed out that the AMC has failed to present annual budget reports for the past two years, raising questions about transparency and accountability in municipal governance. This omission, he argued, undermines public trust and hampers effective oversight of the corporation's fiscal management.
The opposition's claims have sparked a heated debate, with calls for immediate rectification of the budget allocations and a full audit of the AMC's debt. As the discussions continue, the focus remains on ensuring equitable development and financial integrity for all residents of Ahmedabad.
