Ahmedabad’s Rs 18,518 crore municipal outlay for 2026–27 has triggered a sharp debate over spatial equity and fiscal transparency, after opposition councillors questioned how development funds and debt liabilities have been presented in the Ahmedabad AMC Budget. The discussion, held during the second day of general board deliberations, has brought renewed focus to how India’s large cities distribute capital expenditure across rapidly expanding urban geographies.
At the centre of the dispute is a Rs 1,112.7 crore allocation earmarked for new development and landmark projects across seven civic zones. According to figures cited during the meeting, a larger share of this amount has been directed towards western wards compared to eastern neighbourhoods, despite the latter accounting for a higher proportion of the city’s population and a larger land footprint. Eastern Ahmedabad, which houses an estimated two-thirds of residents and spans a broader area, has historically faced infrastructure deficits in drainage, road width, public health facilities and open spaces. Urban planners note that uneven capital allocation can widen disparities in access to civic amenities, especially in cities where industrial zones and lower-income housing clusters are concentrated in specific corridors.
The Ahmedabad AMC Budget also came under scrutiny over reported debt levels. Opposition members argued that the corporation’s published liabilities do not fully reflect outstanding multilateral loans and bond issuances. While the budget document lists borrowings from state agencies, green bonds and other institutional lenders, councillors contended that certain external funding components, including multilateral financing, have not been comprehensively represented in the headline debt figure. Municipal finance experts say clarity on gross versus net debt is critical for investors and rating agencies, particularly as urban local bodies increasingly rely on market instruments such as green bonds to fund climate-resilient infrastructure. Transparent disclosure influences borrowing costs and shapes public trust in long-term fiscal sustainability.
A senior civic official maintained that the allocations reflect project readiness and statutory approvals rather than geographic preference. However, analysts caution that project pipelines themselves can mirror historical biases in land use planning and service delivery. Ahmedabad’s growth trajectory driven by industrial expansion, transit-oriented development and real estate activity has heightened expectations of equitable service provision. With climate risks such as urban flooding and heat stress intensifying, infrastructure investment patterns will determine how resilient different neighbourhoods become over time.
As the Ahmedabad AMC Budget proceeds towards final adoption, the broader question extends beyond accounting arithmetic. For a city positioning itself as a model for sustainable urbanisation, balancing fiscal prudence with inclusive infrastructure spending may prove decisive in shaping both investor confidence and everyday liveability.
Ahmedabad AMC Budget Faces Funding Imbalance Claims
