Rs 1,659 cr budget approved for VMC

The Vijayawada Municipal Corporation (VMC) has approved a budget of Rs 1,659.15 crore for the financial year 2025-26. The budget was presented by Mayor Rayana Bhagya Lakshmi during a municipal council meeting on Saturday. With a strong focus on infrastructure development across all 64 divisions, the budget aims to enhance public health, sanitation, and urban beautification.
The budget projects an opening balance of Rs 349.63 crore, with an estimated revenue of Rs 1,659.15 crore and an expenditure of Rs 1,454.56 crore, resulting in a surplus of Rs 204.59 crore. The major sources of revenue include tax collections (Rs 332.86 crore), assigned revenue (Rs 48.32 crore), town planning income (Rs 61.46 crore), license fees (Rs 7.30 crore), market-related income (Rs 37.15 crore), and water supply and underground drainage charges (Rs 82.10 crore). Additionally, Rs 238.26 crore is expected from various government agencies.
On the expenditure side, the budget earmarks Rs 705.95 crore for revenue expenditure and Rs 691.78 crore for capital expenditure. Loan repayments account for Rs 9.80 crore, while deposits and advances stand at Rs 47.05 crore. The budget allocates Rs 246.40 crore for salaries and wages, Rs 279.87 crore for maintenance, Rs 143.04 crore for repairs, and Rs 32.89 crore for administrative costs.
Municipal Commissioner Dhyan Chandra emphasized that the budget aims to improve basic amenities without imposing additional tax burdens on residents. He reiterated the corporation’s commitment to enhancing sanitation, ensuring a clean water supply, and increasing urban greenery.
Reactions to the budget were mixed. YSRCP Floor Leader Venkata Satyanarayana praised it as a people-centric plan that prioritizes essential services like roads, parks, drainage, sanitation, and electricity. He called it a budget that aligns with the needs of Vijayawada’s residents.
However, opposition leaders expressed concerns. TDP Floor Leader Nellibandla Balaswami criticised the budget as a “numbers game” with limited direct benefits for the people. He argued that it places a financial burden on residents and called for revisions. Similarly, CPM Floor Leader Boya Satti Babu voiced dissatisfaction, claiming that the budget relies heavily on tax revenues rather than securing adequate funds from the central and state governments. He urged the corporation to explore alternative revenue sources to ease the financial burden on citizens.
Despite the criticism, the VMC remains committed to executing its developmental agenda, focusing on infrastructure and essential services to enhance the quality of life for Vijayawada’s.