The Greater Visakhapatnam Municipal Corporation (GVMC) has officially sanctioned a substantial budget of ₹4,180 crore for the fiscal year 2026-27 during its council meeting held on Wednesday. This financial blueprint represents a significant increase of nearly ₹500 crore compared to the previous year's revised outlay of ₹3,704 crore, signaling ambitious plans for urban development in the coastal city.
Major Budget Allocations Across Key Sectors
Engineering works have received the lion's share of funding with a massive allocation of ₹1,028 crore, underscoring the corporation's focus on infrastructure development. Public health follows with ₹455 crore, while AMRUT scheme expenditure has been allocated ₹363 crore to support urban transformation initiatives. Water supply projects receive ₹260 crore, finance commission funds are set at ₹200 crore, and lighting infrastructure gets ₹129 crore. Parks, leisure facilities, and cemeteries receive a comparatively modest ₹36 crore allocation.
Context of Previous Year's Financial Performance
The previous fiscal year witnessed a substantial shortfall in budget execution, with the revised budget settling at ₹3,704 crore against the initially proposed estimate of ₹4,762 crore. This gap of nearly ₹900 crore highlights the challenges in budget implementation and revenue realization that municipal authorities have been grappling with.
Mayor's Perspective on Budget Formulation
Mayor P Srinivasa Rao expressed pride in Visakhapatnam's growing prominence, noting that the city hosted several major events in 2025-26 including International Yoga Day celebrations attended by Prime Minister Narendra Modi. "With the city witnessing rapid growth, the budget was prepared keeping in mind its aspirations and needs," Rao stated. He emphasized that considerable effort went into arriving at the figures through extensive consultations with various departments and detailed estimates for each sector.
Political Criticism and Allegations
The budget approval process was not without controversy. CPM corporator Ganga Rao leveled serious allegations against the corporation, claiming it was blindly following the directions of Chief Minister Chandrababu Naidu. "GVMC spends tens of crores on programmes organised by the state government in Visakhapatnam, but the promised reimbursements are never received," Rao alleged. He further criticized the budget projections as being "almost double the actual receipts," calling it a misleading exercise that turns municipal budgeting into a "game of numbers."
Questionable Expenditure Practices
Adding to the controversy, Jana Sena corporator P Murthy Yadav raised questions about GVMC's distribution of ₹25,000 gift coupons to each corporator ahead of the budget session. "Coupons were distributed to about 300 people, including GVMC officials, with officials receiving more than corporators," Yadav revealed. He characterized this expenditure as "nothing but misuse of public funds" that tarnished the corporation's image and raised serious questions about fiscal responsibility.
Commissioner's Defense of Budget Approach
GVMC commissioner Ketan Garg defended the budget proposals, stating they were prepared on realistic estimates. He explained that the corporation faced two fundamental options in budget formulation: either frame a budget based on the city's needs and aspirations, or align it strictly with actual earnings and receipts. "This year, GVMC chose the latter approach to present a budget closer to real figures and more transparent in nature," Garg clarified, suggesting a shift toward greater fiscal realism in municipal planning.
The approved budget reflects Visakhapatnam's growing urban challenges and aspirations, while simultaneously highlighting the political tensions and transparency concerns that often accompany large-scale municipal financial planning. As the city continues its rapid expansion, the effective implementation of these allocated funds will be closely watched by residents and critics alike.
