Vadodara Municipal Corporation Standing Committee Approves Major Budget for 2026-27
The standing committee of the Vadodara Municipal Corporation (VMC) made a significant financial decision on Saturday, clearing a substantial budget of Rs 7,672 crore for the fiscal year 2026-27. In a move that will directly benefit citizens, the committee firmly rejected all proposed hikes in service charges and administrative fees that had been put forward by the municipal administration.
Rejection of Revenue-Generating Proposals
The VMC administration had initially proposed steep increases across various service charges, administrative fees, and other municipal levies as a strategy to generate additional revenue for the corporation. Notably, these proposals came without any corresponding increases in taxes. After three full days of detailed deliberations and careful consideration, the standing committee unanimously struck down every single one of these proposed hikes, providing financial relief to residents and businesses across Vadodara.
Budget Adjustments and Reallocations
Municipal Commissioner Arun Mahesh Babu had originally presented a budget proposal totaling Rs 7,609 crore to the standing committee. The committee members, after thorough review, made strategic adjustments that resulted in a final approved budget of Rs 7,672 crore. This represents a net increase of Rs 63 crore from the original proposal.
The committee implemented several specific financial reallocations:
- Significant reduction of Rs 9.99 crore in allocations for the annual flower show
- Cut of Rs 3.5 crore from funds earmarked for recruitment tests and examinations
- Increase of Rs 20 lakh in expenditure for pavement construction and related infrastructure works
Revised Revenue Projections
The standing committee projected higher revenue streams from several municipal sources to support the increased budget. These revised projections include:
- Increased administrative penalties for littering and similar violations at the ward level
- Enhanced rental income from municipal shops and cabins
- Higher revenue from plumber license fees
- Additional income from the sale of treated wastewater
- Increased earnings from gentry gate advertisements
The budget also incorporates Rs 12 crore as the state government's expected contribution to the city's public bus service, ensuring continued transportation support for Vadodara residents.
Enhanced Allocations for Civic Services
The approved budget demonstrates a clear focus on improving municipal services and infrastructure. Key areas receiving increased funding include:
- Employee welfare programs, including rewards and accident compensation for municipal workers
- Festival illumination to enhance city celebrations and cultural events
- Electricity expenses for streetlights to ensure proper urban lighting
- Stray animal nuisance control measures to address public safety concerns
- Key road infrastructure projects, including town planning scheme roads
The budget has now been forwarded to the VMC general board for final approval and implementation. This comprehensive financial plan reflects the standing committee's commitment to balancing fiscal responsibility with the practical needs of Vadodara's growing urban population while avoiding additional financial burdens on citizens through service charge increases.
