GHMC Approves Rs 11,460 Crore Budget for 2026-27 Amid Criticism Over Insufficient Funds
In a significant development just ten days before the conclusion of its elected body's term, the Greater Hyderabad Municipal Corporation (GHMC) has officially sanctioned a budget of Rs 11,460 crore for the upcoming 2026–27 financial year. The approval, granted during a council meeting held on Saturday, has sparked considerable debate among corporators who have voiced strong concerns regarding the adequacy and practicality of the financial plan for a rapidly expanding metropolitan area.
Corporators Decry Inadequate Budgetary Allocations
During the meeting, numerous corporators expressed dissatisfaction with the budgetary provisions, labeling them as insufficient and unrealistic for a megapolis experiencing substantial growth. They highlighted that the approved budget of Rs 11,460 crore fails to adequately address the expanded scale and responsibilities of the GHMC, particularly following the merger of 27 municipalities and the extension of its jurisdiction to nearly 2,000 square kilometres.
Corporators pointed out a stark contrast with previous financial allocations. In the 2025–26 fiscal year, when the city covered a mere 650 square kilometres, the budget stood at approximately Rs 8,500 crore. The current allocation, they argued, does not proportionately reflect the civic body's enlarged operational area and increased obligations, raising questions about its ability to effectively manage urban development and public services.
Criticism of Budget Preparation Process
The council members also launched a scathing critique of the budget preparation methodology. They contended that allocating funds without a comprehensive and clear assessment of the assets, revenues, and outstanding debts of the 27 merged municipalities is illogical and financially unsound. Such an approach, they warned, could precipitate long-term fiscal challenges for the GHMC, potentially undermining its financial stability and capacity to deliver essential civic amenities.
Questions Over Single-Corporation Budget Rationale
Malkajgiri corporator V Sravan raised pertinent questions about the rationale behind formulating a budget for a single GHMC corporation amidst ongoing discussions to bifurcate the corporation into three separate civic bodies. He inquired about the distribution mechanisms for the unified budget in the event of a division and questioned the practicality of such a budgeting exercise under the prevailing circumstances.
"The budget book did not comprehensively capture financial details related to expenditure on existing GHMC assets. Furthermore, the asset recovery and valuation of the 27 newly formed ULBs were not fully included, adding that modern tools such as AI could be used to prepare more accurate estimates," he emphasized, advocating for more technologically advanced and transparent financial planning.
Budget Lacks Clarity and Zone-Wise Allocations
Former mayor and ex officio member Majid Hussain criticized the budget document for its absence of zone-wise allocations. With the increase in wards, reorganization of circles, expansion of zones from six to twelve, and integration of 27 ULBs, he asserted that corporators have a legitimate right to understand the population demographics of each zone and how funds will be distributed accordingly.
"While the overall budget stands at Rs 11,460 crore, it remains unclear which zone will receive what allocation and how population size factors into budgeting. Citizens will judge the budget not by its size, but by visible improvements in sanitation, drainage, roads, and other civic services that directly impact daily life," he pointed out, stressing the importance of tangible outcomes over mere financial figures.
Public Safety Concerns Raised
Sitaphalmandi corporator Samala Hema brought public safety issues to the forefront, highlighting the increasing number of dog bite incidents in the city. She recalled that the GHMC had previously proposed identifying locations on the city outskirts for relocating stray dogs but noted that this proposal has yet to be implemented. She urged the civic body to act swiftly on this pressing matter to enhance public safety and well-being.
Commissioner Defends Budget Preparation
In response to the criticisms, GHMC commissioner RV Karnan acknowledged that preparing the 2026–27 budget presented greater challenges than in previous years. He stated that, following the merger of 27 municipalities into the civic body, an assessment of their assets and liabilities was conducted prior to finalizing the budget to ensure a more informed financial plan.
He added that property tax assessment and collection are now fully online through an end-to-end system, a measure that will also be extended to the newly merged municipalities. The commissioner emphasized that the budget has been meticulously prepared with public needs and long-term development priorities in mind, aiming to foster sustainable urban growth.
Mayor Highlights Infrastructure and Sanitation Focus
Later in the day, GHMC mayor Gadwal Vijayalakshmi reflected on her administration's priorities during her five-year tenure. She stated that her team has consistently prioritized infrastructure development and the strengthening of the sanitation system across Greater Hyderabad. These efforts, she explained, are fundamentally aimed at improving civic services and enhancing the overall quality of life for citizens, aligning with the broader goals of urban management and public welfare.
