The Greater Hyderabad Municipal Corporation (GHMC) has formally requested ₹7,594 crore from the Telangana government for the *2025-26 state budget, marking a *115% increase from the previous year’s allocation of ₹3,533 crore. This urgent demand aims to address mounting debt, fund critical infrastructure projects, and sustain civic services for Hyderabad’s 1.4 crore residents.
GHMC Seeks Rs 7,594 Crore in Telangana’s 2025-26 Budget to Address Financial Challenges
Table of Contents
Key Financial Challenges Driving the Request
- *Debt Burden: GHMC faces *₹5,000+ crore liabilities** from past loans used for flyovers, road projects, and flood-prevention initiatives.
- *Monthly Obligations: Over *₹100 crore/month** spent on debt servicing and interest payments.
- *Operational Costs: *₹1,291 crore** allocated for employee salaries and pensions in the new proposal.
Infrastructure Priorities: Where the Funds Will Go
1. Hyderabad City Innovative and Transformative Infrastructure (H-CITI)
- ₹4,000 crore allocated for 38 projects under this program.
- Focus areas: Modernizing roads, drainage systems, and public amenities.
2. Strategic Road Development Programme (SRDP)
- ₹1,000 crore sought for flyovers, underpasses, and road maintenance.
- Aims to reduce traffic congestion in rapidly expanding areas.
3. Flood Prevention and Lake Conservation
- Funds earmarked for the Strategic Nala Development Programme (SNDP) and lake preservation.
- Critical after recurring urban flooding incidents in 2023-24.
Debt Management and Revenue Streams
- ₹1,200 crore requested for loan repayments, including legacy debts from previous administrations.
- Efforts to recover outstanding property taxes from 140+ government establishments.
- Enhanced focus on vehicle tax collection and land acquisition funds.
Also Read: Telangana Budget 2025 Session Debate Likely Over 42% BC Quota, SC Categorization Bills
Political Context and Approval Process
- The budget proposal follows heated debates in the GHMC Council, where opposition parties accused the ruling government of neglecting urban development.
- Mayor Vijaya Lakshmi R Gadwal emphasized alignment with Chief Minister Revanth Reddy’s vision for Hyderabad’s growth.
- Final approval deadline: March 2025, as per GHMC Act requirements.
Long-Term Vision: Beyond 2025-26
GHMC has outlined broader financial needs to the 16th Finance Commission:
- ₹10,500 crore for scaling infrastructure and waste management.
- ₹800 crore for lake conservation and urban flood prevention.
- ₹200 crore to protect heritage structures.
Officials estimate ₹18,000 crore will be needed over the next five years to keep pace with Hyderabad’s population growth and industrial expansion.
Why This Matters
Hyderabad’s status as a global IT and pharma hub hinges on modern infrastructure. The GHMC’s budget request reflects urgent needs to:
- Avoid service disruptions due to financial strain.
- Support population growth driven by employment opportunities.
- Enhance climate resilience amid increasing flood risks.
The Telangana government’s response will shape Hyderabad’s ability to compete with metros like Bengaluru and Chennai in attracting investments.
As budget negotiations advance, GHMC’s ₹7,594 crore demand underscores the delicate balance between ambitious urban development and fiscal responsibility. With Hyderabad contributing significantly to Telangana’s economy, the allocation decision will impact millions of residents and the city’s future as a sustainable megacity.