VARANASI: The Varanasi Development Authority (VDA) forecasts an operational income of ₹2,070.61 crore for the financial year 2026-27, marking a substantial increase of about 448% from the previous year.
In conjunction, a budget allocation of ₹2,069 crore has been made, reflecting a rise of approximately 343% compared to last year. Overall, a comprehensive budget of ₹2,866.20 crore was approved on Thursday.
The budget is heavily focused on the city’s expansion, new townships, and infrastructure development.
The primary revenue source identified in the budget is land sales and compensation, expected to generate about ₹1,206 crore. Additionally, around ₹575 crore has been earmarked for capital projects and expansion initiatives. On the expenditure front, ₹2,069 crore has been allocated for development activities, land acquisitions, infrastructure construction, and various administrative expenditures.
For the current financial year, the VDA plans to distribute approximately ₹1,700 crore as compensation under the Madhni, Ganjari, and Kallipur township schemes. This initiative is viewed as a vital step toward accelerating key residential and integrated development projects. The VDA is currently advancing land acquisition and project development for four significant residential schemes under the Mukhyamantri Shahri Vistarikaran Yojana.
Owing to the swift approval of map works and improved land monetization through new town projects, there is a strong likelihood that actual income will surpass the proposed figures. This would further stabilize the authority’s financial position and enhance the momentum of development activities.
According to VDA officials, this budget is crucial for bolstering Varanasi’s rapid urbanization, developing new residential townships, fostering institutional growth, and enhancing public amenities. The proposed budget aims to catalyze the planned development efforts.
The VDA was established on August 19, 1974, with the goal of planned and comprehensive development in Varanasi. Initially, it covered approximately 793 square kilometers, including 635 villages and municipal areas. In 2024, 215 new revenue villages were added, bringing the development area to 1,073 square kilometers.
The VDA operates on both banks of the holy Ganga River, creating geographical and administrative divisions. Its primary aim is to ensure sustainable, balanced, and planned regional development. The authority oversees road construction, sewer systems, drainage infrastructure, residential schemes, and township development.
In the approved revised budget for the financial year 2025-26, the authority planned for an income of ₹378 crore and an expenditure of ₹468 crore.
