AMC Budget 2026-27 Faces Allegations of Financial Irregularities and Fraud
AMC Budget Scandal: Opposition Alleges Fraud in Allocations

AMC Budget 2026-27 Rocked by Allegations of Financial Misconduct

The second day of discussions on the Ahmedabad Municipal Corporation's (AMC) budget for 2026-27, amounting to Rs 18,518 crore, was dominated by serious allegations of financial irregularities. Opposition leader Shehzad Khan Pathan launched a scathing attack, accusing the civic body of engaging in what he termed "copy-pasting" budget figures for nearly two decades, raising concerns over transparency and accountability.

Accusations of Misrepresentation in SC and ST Allocations

During the general board meeting held on Friday, Pathan specifically targeted the allocations meant for Scheduled Castes (SC), Scheduled Tribes (ST), and economically and socially backward classes. He alleged that the AMC has been misrepresenting these funds, violating the provisions of the Gujarat Provincial Municipal Corporation Act.

Pathan pointed out that under Section 63(2) of the Act, up to 10% of the municipal corporation's income must be spent on works for these marginalized communities. However, he claimed that for years, the AMC has implemented this provision only on paper, without conducting proper surveys or identifying beneficiary areas.

Discrepancies in Budget Figures Exposed

Pathan highlighted significant discrepancies in the budget documents. He noted that while the total budget size for 2026-27 is Rs 18,518 crore, Annexure J of the budget book shows the corporation's income as Rs 10,500 crore. Of this, Rs 1,050 crore—exactly 10%—was earmarked for SC, ST, and backward classes.

"If the total budget is Rs 18,518 crore, then a 10% allocation should amount to Rs 1,851 crore," Pathan argued. "Instead, Annexure I claims that Rs 3,761 crore has been allocated. But these funds are misleadingly shown under general heads such as roads, bridges, stormwater lines, lighting, schools, hospitals, and waste management. Are these facilities exclusive to SCs and STs? This raises serious questions about the actual utilization of funds."

Allegations of Outdated Data and Systematic Fraud

Further intensifying his allegations, Pathan accused the civic body of relying on decades-old data. He stated that the AMC uses outdated information showing a 50% slum and hutment population in 11 out of 37 town planning (TP) schemes, while no fresh surveys have been conducted across the 287 TP schemes and non-TP areas currently existing in Ahmedabad.

Calling this practice "systematic fraud," Pathan demanded immediate action. He urged for fresh surveys to be conducted and called for transparent accounting of all funds allocated for marginalized communities. His demands underscore a broader call for integrity in municipal governance and financial management.

Implications for Municipal Governance

These allegations have cast a shadow over the AMC's budgetary processes, prompting scrutiny from various stakeholders. The accusations suggest potential mismanagement and lack of oversight, which could impact public trust in the civic body's operations.

As the discussions continue, the focus remains on ensuring that funds are allocated and utilized appropriately, particularly for vulnerable sections of society. Pathan's claims highlight the need for rigorous audits and updated data to prevent such irregularities in the future.