Gandhinagar: Ahead of the upcoming 16 municipal corporation elections, the Gujarat government has unveiled a ₹3.35 lakh crore budget for the 2026-27 financial year, setting ambitious targets for urban development, infrastructure, and sports facilities. Chief Minister Bhupendra Patel’s administration aims to accelerate city-level development and strengthen urban voter engagement through key initiatives.
₹330 Crore Allocated for Waste-Free Cities
The budget includes ₹330 crore for creating “waste-free cities” across Gujarat, aiming to improve sanitation, implement solid waste management solutions, and enhance public health infrastructure in urban areas.
Major Investments in Urban Transport and Connectivity
- ₹200 crore for a dedicated Urban Transport Fund and Integrated Traffic Management System
- ₹100 crore for “Mission Jeevan Dhara” to improve water supply across 32 urban local bodies
- Development of Regional Rapid Transit Systems (RRTS) connecting Ahmedabad and Surat to satellite towns
Additionally, the state will invest ₹800 crore in the Gujarat High-Speed Corridor to enhance next-generation connectivity, while ₹600 crore is allocated for climate-resilient and technologically advanced roads.
Read also: Gujarat Issues Over 2.19 Crore Soil Health Cards to Boost Farmers’ Income and Sustainable Farming
Olympic-Ready Ahmedabad: Sports Infrastructure Boost
Gujarat’s budget sets aside ₹1,278 crore to prepare Ahmedabad for the 2030 Commonwealth Games with world-class sports facilities and modern transport. Key allocations include:
- ₹90 crore for a world-class hockey stadium
- Inclusive, community-friendly sports complexes
- Innovative under-flyover facilities
These measures aim to position Ahmedabad as an Olympic-ready city and promote sports tourism in the state.
Wire-Free Mission: Modernizing Urban Utilities
The “Gujarat Wire-Free Mission” has been allocated ₹500 crore to replace overhead electricity lines with underground cables, reducing visual pollution and enhancing urban safety.
Satellite Towns to Support Expanding Cities
Five new satellite towns with modern amenities will be developed near Ahmedabad, Surat, Rajkot, and Vadodara:
- Ahmedabad: Kalol and Sanand
- Surat: Bardoli
- Vadodara: Savli
- Rajkot: Hirasar
These towns will be connected to main urban centers via the Regional Rapid Transit System, easing congestion and improving connectivity.
Developed Gujarat Fund: ₹50,000 Crore Vision
A key highlight of the budget is the creation of a ₹50,000 crore “Developed Gujarat Fund,” with ₹10,000 crore allocated for 2026-27. Of this, ₹3,000 crore will be dedicated to state expressway development, strengthening regional transport networks.
Economic and Fiscal Highlights
- Gujarat’s GDP contribution to India rose from 5.1% in 2000-01 to 8.3% in 2025-26
- Total state budget increased by 10.2% from last year to ₹4.08 lakh crore
- Capital expenditure rose to 39% of the total budget, reflecting a strong focus on asset creation
- Per capita income in Gujarat stands at approximately ₹3 lakh, 1.6 times the national average
- Gross State Domestic Product (GSDP) grew 10.35% despite global economic challenges
Strategic Push Ahead of Municipal Elections
With municipal elections on the horizon, the BJP-led state government’s budget clearly focuses on urban development to consolidate its hold on city voters. From modern infrastructure to satellite towns and world-class sports facilities, the budget aims to combine development with political strategy.
Read also: Gujarat Budget 2026-27: Rs 4.08 Lakh Crore for Health, Agriculture, Tourism & Skill Development
