GHMC proposes record Rs 11,460 crore budget for 2026–27 after merger of 27 local bodies

Hyderabad: Following the expansion of the Greater Hyderabad Municipal Corporation (GHMC) limits, the civic body has drawn up record budget estimates of Rs 11,460 crore for the 2026–27 financial year, covering 300 divisions across the enlarged city.

The proposals have been prepared by GHMC Commissioner RV Karnan and are scheduled to be discussed by the Standing Committee at a special meeting on December 29, chaired by Mayor Gadwal Vijayalakshmi.

Standing committee to examine allocations, expenditure

Committee members will deliberate in detail on revenue projections, expenditure patterns and fund allocations. Any gaps or shortcomings identified during the discussion will be recommended for correction.

The GHMC Finance Department clarified that a special council meeting will be convened before Sankranti to debate the budget formally. After approval, the proposals will be forwarded to the State government for final clearance.

Separate estimates for old GHMC and newly merged areas

The budget has been prepared separately for the pre-merger GHMC area and 27 newly merged local urban bodies in the city’s outskirts.

For the old GHMC, the approved budget for 2025–26 was Rs 8,440 crore, which was later revised to Rs 9,000 crore. For 2026–27, the budget estimate has been pegged at Rs 9,200 crore.

For the newly merged peripheral areas, a separate budget of Rs 2,260 crore has been proposed.

Old City remains the backbone for revenue

Officials estimate that the old GHMC area will generate around Rs 4,581 crore in revenue through multiple sources, including:

- Property tax: Rs 2,245 crore

- Building permission fees: Rs 1,200 crore

- State Finance Commission grants: Rs 400 crore

- Assigned revenues: Rs 330 crore

- Mutation fees: Rs 130 crore

- Trade licences: Rs 120 crore

- Advertisement fees: Rs 55 crore

- Municipal asset rentals: Rs 10 crore

User charges and other minor sources: Rs 91 crore

In contrast, the peripheral areas are expected to generate only about Rs 1,860 crore, with property tax contributing Rs 602 crore. Additionally, officials anticipate Rs 5,019 crore through Central and State government grants.

Peripheral areas dependent on core city revenue

A closer analysis of the estimates indicates that revenues from the old GHMC area will be crucial to sustaining services in the newly merged regions.

Officials caution that the projected Rs 2,000 crore revenue from peripheral areas may not fully materialise.

Field-level assessments suggest that revenue growth in these areas would improve only if building permissions currently issued by HMDA are transferred to GHMC, enabling better fee collection.

Financial balancing act ahead

With the city’s expansion placing new demands on infrastructure and civic services, the upcoming budget discussions are expected to focus on financial sustainability, equitable allocation and ensuring that the enlarged GHMC can function efficiently without overburdening its core revenue base, officials said.