Gandhinagar: The Gujarat government has allocated a total provision of ₹33,504 crore to the Urban Development and Urban Housing Department in the State Budget for 2026–27, with a strong focus on urban infrastructure, housing, transport systems, sanitation, and smart city initiatives.

To expand mass transit systems, the budget makes a provision of ₹2,217 crore for Gujarat Metro Rail projects, including the expansion of metro networks in Ahmedabad and Surat.

A major share of ₹16,116 crore has been earmarked under the Swarnim Jayanti Mukhyamantri Shaheri Vikas Yojana, a key scheme for strengthening urban infrastructure. In addition, ₹3,354 crore has been allocated as financial assistance to Urban Local Self-Government institutions.

Another ₹1,900 crore has been set aside under AMRUT Mission 2.0 for water supply, drainage systems, lake development, and urban transport infrastructure.

Housing for the urban poor remains a priority, with ₹1,420 crore allocated under Pradhan Mantri Awas Yojana (Urban). The government has also provided ₹1,376 crore through Finance Commission grants for various urban development works.

External funding of ₹800 crore has been arranged for resilience and peri-urban development projects in Ahmedabad, while ₹577 crore has been allocated under Swachh Bharat Mission (Urban) 2.0, Nirmal Shaher, and Nirmal Gujarat 2.0 initiatives.

To improve mobility and safety, ₹350 crore will be used for the construction of railway overbridges and underbridges to make urban areas railway-crossing-free, alongside ₹200 crore for smart parking and integrated traffic management systems.

Tourism- and heritage-linked urban projects have received attention, including ₹236 crore for infrastructure at the Statue of Unity and ₹147 crore to develop Lothal and Ambaji at an international level. Additionally, ₹100 crore has been allocated for MICE infrastructure across major cities, and separate ₹100-crore provisions have been made for the Mukhyamantri Nagar Navjivan Yojana, development of the SG Highway as a green urban corridor, daily water supply initiatives, and the Urban Challenge Fund for iconic city projects.

Environmental sustainability and public amenities are supported through allocations for iconic parks, the Catch the Rain scheme, fire prevention services, new fire stations, affordable rental housing, GIS-based urban mapping, swadeshi urban malls, infrastructure at GIFT City, and PM E-Bus Yojana implementation.

Overall, the budget underscores the state government’s emphasis on modern, resilient, and inclusive urban growth, improved mobility, affordable housing, sanitation, and technology-driven governance across Gujarat’s cities. DeshGujarat