VIJAYAWADA: The Andhra Pradesh government has increased the urban development Budget to Rs 13,862.29 crore for 2025-26, with Rs 4,658.89 crore for revenue expenditure and Rs 9,203.41 crore for capital expenditure. This marks a rise from Rs 11,490.83 crore in 2024-25 and Rs 11,558.63 crore in 2023-24, emphasising urban infrastructure growth.
Finance Minister Payyavula Keshav criticised the previous government for centralising municipal payments, stating that municipalities would regain financial control from April 1.
Reaffirming Amaravati as the State capital, the government allocated Rs 6,000 crore for its development, backed by the Centre, World Bank, ADB, and HUDCO, ensuring progress without State Budget strain.
The Budget prioritises urban welfare, abolishing user fees for waste collection and pledging to clear 83 lakh tonnes of waste. Swachh Andhra initiatives have been strengthened, and 204 Anna Canteens reopened to provide subsidised food for the urban poor.
Narayana thanks CM for stabilising fiscal situation
Municipal Administration and Urban Development Minister Ponguru Narayana criticised the previous government for financial mismanagement, saying poor planning stalled urban projects. He credited Chief Minister N Chandrababu Naidu for restoring fiscal discipline.
At a press conference on Friday, Narayana alleged that the 15th Finance Commission funds were diverted, delaying urban projects. From April 1, municipal taxes will go directly to local bodies instead of being centralised under CFMS, ensuring self-governance.
He welcomed the Rs 13,862 crore municipal allocation, including Rs 6,000 crore for CRDA. He noted that Rs 8,500 crore under AMRUT remained unused as the previous regime failed to provide the required 30% matching fund.
Dismissing Amaravati cost claims, he clarified that IAS officers’ bungalows cost 4,382 per square foot, not 9,300, while ministers’ and judges’ residences cost Rs 4,264 per square foot.
Minister Narayana assured Amaravati’s construction would resume soon, with tenders finalised by March 10.