MCD Budget 2026-27: No change in tax rates; sanitation & education in focus

The corporation’s liabilities, however, exceed the revenue target set by the Commissioner, amounting to Rs 15,791 crore.

MCD, he said, plans to boost revenue by expanding the tax base and strengthening recovery mechanisms. It is expected that 58% of total receipts will be generated through taxes with improved collection systems.

Amid Delhi’s ongoing fight against air pollution, the civic body has placed an order for 14 mechanical road sweeping machines under the National Clean Air Programme (NCAP) fund. These will soon be added to the corporation’s fleet, said Kumar.

Meanwhile, the highest allocation of expenditure in this Budget is for the sanitation head at Rs 4,795.28 crore (around 29%). However, this is lesser than last year’s allocation (Rs 4,907 crore). While the MCD allocated Rs 2,520.34 crore for the education sector; public health and medical aid sector has been allocated Rs 1,905.60 crore.

The MCD Commissioner said education has been allocated around 15% of the total Budget, making it the second-highest allocation after sanitation, while health stands third with nearly 12%.

According to officials, the Budget for sanitation sector will be focussing on cleaning of roads and overall visible cleanliness in the city.

In the education sector, the major focus remains on school infrastructure including construction of new buildings and minor repairs needed.

A major chunk also goes into Direct Bank Transfers to students for purchasing books, uniforms, stationery and bags. Other expenditures include mid-day meals, improvement in academic structure among others.

“Out of approximately 6,58,541 students studying in Delhi’s municipal corporation schools, 4,26,467 students have received a subsidy amount of Rs 1,670 per student DBT into their bank accounts. The corporation has transferred a total of ₹71,22,00,000 to the students’ bank accounts under this scheme,” said Kumar.

In his Budget speech, Kumar also emphasised that new solid waste management units are coming up in the city.

While highlighting the civic body’s waste management efforts, he highlighted the laying of the foundation stone for a 3,000-tonnes-per-day (TPD) waste-to-energy plant at Narela-Bawana and the expansion of the Okhla waste-to-energy facility from 1,950 TPD to 2,950 TPD. The civic body further stated that tenders have been floated for fresh waste disposal processing units at Bhalswa, Shinghola, Okhla and in Bawana.

Meanwhile, the Revised Budget Estimates for 2025-26 were stated at Rs 16,296.19 crore and income at Rs 15,679.72 crore.

Budget highlights: 

— After a drone survey, records of all properties in Delhi will be digitalised. The survey has been initiated under a tripartite agreement between the MCD, DDA and Survey of India to identify illegal constructions, house tax collection and encroachments in Delhi. A survey of about one thousand square kilometers has been completed. This is about 75%.

— Kumar stated that health trade licences will be simplified. The corporation will strictly enforce a single license scheme for any type of business.

— To “reduce pollution” in the city, the corporation is going to construct 600 km of roads. So far, 250 km of roads have been constructed.