Urban development outlay up 25% in Haryana Budget
Five waste-to-energy plants on urban agenda
Urban development and civic upgrade have emerged as top priorities in Haryana’s 2026-27 Budget, with a 24.86% increase in allocation for the Urban Local Bodies (ULB) and Town & Country Planning Departments.
The combined outlay for the two departments has been raised to Rs 6,797.57 crore from Rs 5,444.31 crore in the previous fiscal, underscoring the government’s focus on strengthening urban infrastructure and services across the state.
Among the major initiatives is the establishment of five 25-megawatt waste-to-energy plants under the ULB Department in key urban clusters, including Faridabad, Gurugram, Manesar and Ambala. The move aims to strengthen solid waste management while generating renewable energy.
“Waste to Energy plants are the future of waste management and Haryana is all set to take a national lead in it. We see urban development as key to state progress and thus a major chunk of Budget has been allocated for urban development and civic upgrade. We are getting world’s best technology to establish these plants and ensure that they prove to be pivotal in solving waste crises in cities like Gurugram,” said Urban Local Bodies Minister Vipul Goel.
As per the recommendations of the 16th Finance Commission, Rs 1,185.92 crore has been earmarked for Urban Local Bodies for the 2026-27 financial year.
To accelerate infrastructure growth, the government announced that funds would be released to municipalities — excluding the Municipal Corporation of Gurugram — for projects, provided they contribute part of the cost either through their own resources or by issuing municipal bonds. The minimum project cost has been fixed at Rs 5 crore for municipal corporations, Rs 2 crore for municipal councils and Rs 1 crore for municipal committees.
In a significant environmental initiative, the Budget also highlighted approval of a Rs 2,716 crore grant from the World Bank to support urban emission control measures and sustainable transport solutions under a Clean Air Project.
Additionally, Ambala Cantonment is set to be developed into a new metropolitan city, with seven new sectors planned across 1,000 acres. The government has also retained a special Rs 100 crore drainage fund to tackle persistent waterlogging and drainage issues in urban areas.
“The current Budget focuses on resolving on ground issues like water logging and poor air quality in NCR districts. We have set aside budget to execute special action plans to resolve the issues at root cause level. The further allocation of ULB funds will be done based on subjective needs of each civic agency,” added Goel.
