Varanasi: The Varanasi Development Authority (VDA) has estimated an operational income of Rs 2,070.61 crore for the financial year 2026-27, approximately 448% higher than the previous financial year. Similarly, an expenditure provision of Rs 2,069 crore was made, approximately 343% higher compared with the previous year. Overall, an ambitious budget of Rs 2,866.20 crore was proposed and passed on Thursday.The budget places special emphasis on the planned expansion of the city, new townships, road and infrastructure development. The largest revenue source in the proposed budget is land sale and compensation, from which approximately Rs 1,206 crore in receipts are estimated. Additionally, approximately Rs 575 crore has been provisioned under capital heads and various expansion schemes. On the expenditure side, Rs 2,069 crore has been allocated for development works, land acquisition, infrastructure construction, and other administrative and project expenditures.In the current financial year, VDA is expected to distribute approximately Rs 1,700 crore as compensation amount under the Madhni, Ganjari and Kallipur township schemes. This payment is being considered an important step towards accelerating these major residential and integrated development schemes. Currently, the VDA is actively pursuing land acquisition and project development for four major residential projects under the Mukhyamantri Shahri Vistarikaran Yojana.Due to the rapid pace of map approval works and better monetisation of land value through new township projects, there is a strong possibility that actual income will exceed the proposed figures. This will make the authority’s financial position more stable and capable, and development works will gain additional momentum.According to VDA officials, this budget will prove significant in strengthening Varanasi’s rapidly expanding urbanisation, new residential townships, institutional development and public amenities. This budget proposed by VDA will provide new direction and momentum to the planned development. The VDA was established on Aug 19, 1974, with the objective of planned and comprehensive development of Varanasi. Initially, its jurisdiction covered approximately 793 square kilometres, including 635 villages along with the municipal area. In 2024, 215 new revenue villages were also incorporated into VDA’s development zone, increasing its development area to 1,073 square kilometres.VDA’s operational area extends across both banks of the holy Ganga River, which divides it into two parts, geographically and administratively. The primary objective of the authority is to ensure sustainable, balanced and planned development of the region. Under its purview, road construction, sewer lines, drainage systems, residential schemes, township development and other infrastructure projects are developed and managed.In the approved revised budget for the financial year 2025-26, the authority had made provisions for an income of Rs 378 crore and expenditure of Rs 468 crore.
