VIJAYAWADA: The Vijayawada Municipal Corporation (VMC) on Tuesday presented a deficit Budget for the financial year 2026-27, even after revising its estimates, with expenditure continuing to exceed income by Rs 125.52 crore.
Initially, during the Standing Committee meeting held on January 23, the budget approved Rs 1,968.13 crore as total income and Rs 2,093.65 crore as total expenditure.
The same estimates were later placed before the Council meeting held on Tuesday under the chairmanship of Mayor Rayana Bhagya Lakshmi. However, the original estimates faced opposition from a majority of councillors, leading to a revision of the budget.
Following the revision, Rs 450 crore was removed from both capital income and capital expenditure, mainly due to delays in mobilisation of grants and execution of major development projects.
After the adjustment, the total income of the Corporation was reduced to Rs 1,518.13 crore, while total expenditure was brought down to Rs 1,643.65 crore, resulting in a deficit of Rs 125.52 crore, which remained unchanged despite the pruning of capital components. As per the revised estimates, revenue income stands at Rs 923.53 crore, while capital income has been scaled down to Rs 521.04 crore, apart from Rs 73.56 crore from deposits and advances.
On the expenditure side, revenue expenditure continues at Rs 794.98 crore, while capital expenditure has been reduced to Rs 767.09 crore, besides Rs 8.02 crore earmarked for loan repayments.
A major portion of revenue expenditure continues to be absorbed by salaries, operational costs and maintenance works. Staff salaries alone account for Rs 265.38 crore, followed by operational expenses of Rs 298.02 crore and repairs and maintenance works estimated at Rs 186.11 crore.
Addressing the Council, the Mayor said the budget was framed keeping in view the rapid expansion of Vijayawada and the steady rise in population.
“The Corporation ensured adequate allocation of funds to provide comprehensive urban infrastructure, including roads, drainage, water supply and sanitation, so as to improve the quality of life of city residents,” she added.
Stating that the present governing body has completed five years in office, the Mayor said she was pleased to place before the public the achievements and developmental works undertaken by the Vijayawada Municipal Corporation during this period.
She noted that the Corporation had, for the first time in its history, secured several national-level awards and recognitions. Referring to Swachh Survekshan rankings, she said Vijayawada competed nationally among cities with a population of over 10 lakh and secured 3rd rank in 2021-22, 5th rank in 2022-23, 6th rank in 2023-24, and was selected as one of the four Super Swachh League Cities in 2024-25.
The city also achieved a 7-Star Garbage Free City rating and secured 5th rank in waste water treatment.
She said efforts were now underway to secure first place in Swachh Survekshan 2025-26, while continuing to focus on sustainable urban development.