Guidelines Issued For Proper Utilisation Of Urban Funds
Through G.O.Ms. No.40 dated February 26, 2026, the Municipal Administration & Urban Development (MA&UD) department has partially modified earlier orders to align fund utilisation with pressing civic requirements.
VIJAYAWADA: The Andhra Pradesh government has issued comprehensive guidelines to streamline the utilisation of funds realised under LRS-2020 and BPS-2025, prioritising critical urban infrastructure such as stormwater drainage, sewerage, and legacy waste management.
Through G.O.Ms. No.40 dated February 26, 2026, the Municipal Administration & Urban Development (MA&UD) department has partially modified earlier orders to align fund utilisation with pressing civic requirements. The move aims to promote sustainable, livable cities while addressing persistent gaps in drainage, sanitation, and environmental infrastructure.
Principal secretary S. Suresh Kumar said the guidelines ensure transparent, accountable, and time-bound utilisation of regularisation funds to strengthen drainage, sanitation, and environmental safeguards across the state.
Though substantial investments are underway under AMRUT 2.0 for water supply, sewerage augmentation, and rejuvenation of water bodies, officials noted funding shortfalls in key sectors. Accordingly, LRS and BPS funds earmarked for developmental purposes will now give first charge to stormwater drainage works on an annuity model and to projects assured by the Chief Minister.
Local bodies and urban development authorities, including CRDA, VMRDA, VKPCPIR UDA, and IALA, have been directed to follow a clear priority order. After storm water works and the Chief Minister's assurances, focus will shift to Anna Canteens, sewerage treatment plants, legacy waste clearance and site development, construction of storm and sewage drains, a new master plan and link roads, lake and pond protection, recreation facilities, and layout of open spaces.
Other works, such as roads and street lighting, require prior government approval. The government also revised the sharing pattern. Under LRS, rural funds will be split among UDA (30%), gram panchayat (50%), and DTCP (20%), while in urban areas, UDA will receive 10%, ULB 25%, and DTCP 65%. Under BPS, rural allocation will be UDA 15%, GP 70%, and DTCP 15%; urban sharing remains 10%, 25%, and 65%, respectively.
