Vijayawada Municipal Corporation Council Approves Revised Budget for 2026-27
The Vijayawada Municipal Corporation (VMC) Council has officially passed the annual budget for the 2026–27 financial year, setting a revised outlay of Rs 1,518.13 crore. This decision was made during a council meeting chaired by VMC Mayor Rayana Bhagya Lakshmi, where revenue receipts and capital expenditure for the same period were estimated at Rs 1,643.65 crore.
Budget Revisions and Political Disputes
Initially, the Council had presented a proposed annual budget of Rs 2,093.65 crore, which included both revenue and capital expenditures. However, this figure was later revised downward to Rs 1,643.65 crore. The revision came after ruling party council members, led by the YSRCP, unanimously rejected a proposed Rs 450 crore capital expenditure from VMC funds. This amount was intended for the construction of a Rs 600 crore stormwater drain project, planned under the Public-Private Partnership (PPP) model.
A heated debate erupted between the ruling YSRCP and opposition NDA council members over this proposed expenditure. The dispute also involved a Rs 150 crore grant-in-aid promised by the AP CRDA for the stormwater drain project's development. VMC Commissioner HM Dhyanchandra clarified the financial structure, explaining that the AP CRDA and VMC would each allocate Rs 150 crore, with the remaining Rs 300 crore to be covered by the concessionaire under the PPP model. Payments to the private developer would be made on an annuity basis, though the specific modalities have not yet been finalized.
Mayor's Resolution and Budget Approval
Strongly opposing the PPP model for developing stormwater drains in Vijayawada city, Mayor Rayana Bhagya Lakshmi introduced a resolution to scrap topics 70 and 72 in the budget allocations. These topics accounted for Rs 450 crore earmarked for the PPP model development of stormwater drains under the capital expenditure estimates. Following this move, the Council approved the budget with the revised estimates.
In addition to the 2026–27 budget, the VMC Council also gave its approval for the revised budget for the 2025–26 financial year during the Tuesday meeting. This marks the fifth consecutive civic budget presented by the YSRCP, which holds the ruling majority in the VMC Council. The party's term is set to conclude on March 17, highlighting their sustained influence in municipal governance over recent years.
The budget approval process underscores ongoing tensions between political factions regarding infrastructure funding and development models in Vijayawada. The rejection of the PPP approach for the stormwater drain project reflects broader concerns about public-private collaborations in urban planning, potentially setting a precedent for future municipal projects in the region.
