Lucknow Civic Budget 2026-27 Approved: ₹4,692 Crore Plan Prioritises Cleanliness Over Roads

The Lucknow Municipal Corporation (LMC) executive committee has approved a ₹4,692-crore budget for the financial year 2026-27. The biggest emphasis in the new plan is on cleanliness and waste management, while the allocation for road construction and repairs has been reduced.

An amount of ₹271 crore has been proposed for roads, which is ₹61 crore lower than the revised estimate of ₹332.40 crore. The highest allocation, about ₹300 crore, has been earmarked for sanitation and solid waste management. The civic body also plans to create vending zones in every ward to ease congestion in markets.

Budget cleared without new taxes

The budget was presented at the municipal headquarters on Sunday in a meeting chaired by Mayor Sushma Kharkwal. Municipal Commissioner Gaurav Kumar tabled the financial plan, which was approved without any amendments after discussion among executive members. No new tax provisions have been introduced.

Some councillors had demanded an increase in ward development funds, but the executive committee rejected the proposal. There has also been no change in the quota of the mayor and the municipal commissioner.

The mayor said the budget has been prepared keeping overall city development, sanitation and stronger infrastructure in mind. She also announced that next year the budget will be presented in the proposed new office building.

Senior officials and councillors participated in the meeting, where several development proposals related to roads, sanitation and pending payments were approved.

Property tax relief and exemptions

The corporation has announced several tax relief measures:

• For municipal employees' houses, 10% tax will be charged on annual valuation up to 900, and 15% above 900.
• Recipients or widows of Param Vir Chakra, Ashok Chakra and other gallantry awards will get house tax exemption.
• Bharat Ratna awardees, police personnel honoured with gallantry medals by the President, and Arjuna Award-winning sportspersons will also be exempt from house tax.
• National-level journalists, scientists and athletes will get 50% concession in general tax, provided they own only one residential property within municipal limits and live there.
• Freedom fighters, their widows, dependent minor children and unmarried daughters will be fully exempt from general tax.
• Persons with 80% to 100% visual or physical disability will get full exemption from building and water tax.
• Those with 50% to less than 80% disability will receive a 50% rebate in house tax.

PPP model for vacant land development

The civic body plans to develop all vacant municipal land through a Public-Private Partnership (PPP) model. A special team comprising officials from related departments will survey properties and prepare a list. The proposal will include land use, potential revenue and development plans.

Roads allocation reduced, liabilities rise

₹271 crore has been set aside for new roads and repairs to make streets pothole-free and improve traffic movement. However, the amount is ₹61 crore less than the current year's revised estimate.

The budget earmarks ₹405 crore for payment of pending works, meaning the corporation's liabilities have increased from ₹345 crore in the revised 2025-26 budget to ₹405 crore. Allocation for payments to executing agencies has been reduced from ₹130 crore to ₹100 crore.

Major push for waste management

The largest allocation of ₹300 crore has been proposed for solid waste management. The corporation claims this will strengthen door-to-door garbage collection, scientific disposal and overall cleanliness.

However, only ₹15 crore has been set aside for drain cleaning in waterlogging-prone areas during the monsoon season.