BMC unveils Rs 80,952-cr budget with 60% push for capital works

No new big ticket infrastructure project was announced as the civic body focused on pushing the existing projects along with augmenting water supply in the city involving the Gargai Dam project

BMC commissioner Bhushan Gagrani presents BMC's 2026-27 budget, in Mumbai on 25 February 2026.BMC commissioner Bhushan Gagrani presents BMC's 2026-27 budget, in Mumbai on 25 February 2026. (Express photo by Sankhadeep Banerjee)

The Brihanmumbai Municipal Corporation (BMC) on Wednesday tabled a Rs 80,952.56 crore budget for 2026–27, up 8.77 per cent from last year’s Rs 74,427.41 crore outlay, aligning the civic body’s spending priorities with the Mahayuti alliance’s pre-civic poll promise of strengthening Mumbai’s urban infrastructure.

No new big ticket infrastructure project was announced as the civic body focused on pushing the existing projects along with augmenting water supply in the city involving the Gargai Dam project — a pet project of Chief Minister Devendra Fadnavis that was scrapped by former chief minister Uddhav Thackeray-led MVA government.

Presenting the budget before the standing committee, municipal commissioner Bhushan Gagrani said, “The budget reflects our commitment to strengthen Mumbai’s civic infrastructure, improve essential services and ensuring a balanced and sustainable growth.”

“Through disciplined financial management and sustained implementation, we have maintained fiscal stability while delivering significant progress across various sectors,” added Gagrani.

“The budget is focused on the sectors of financial prudence, building trust and further through infrastructure, investing in health and education, sustainability and greening, emergency and disaster preparedness as well as ease of doing business alongside administrative efficiency,” said Gagrani.

Capital expenditure accounts for 60 per cent of the total outlay, underscoring the civic body’s focus on large infrastructure projects. Capital expenditure for 2026–27 has been pegged at Rs 48,164.28 crore, while revenue expenditure stands at Rs 32,698.44 crore. Of the total capital outlay, 42 per cent has been allocated to four key projects, the Mumbai Coastal Road (South), seven waste water treatment facilities, the Goregaon Mulund Link Road and the ongoing road concretisation works.

Revenue income for 2026–27 is estimated at Rs 51,510.94 crore, a 19.35 per cent increase over the previous year’s budget estimate. The civic body expects to close the year with a surplus of Rs 89.84 crore.

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In a first, the BMC has announced plans to raise municipal green bonds to finance sustainable infrastructure projects such as waste water treatment and desalination plants. Civic sources said the BMC aims to generate between Rs 5,000 crore and Rs 10,000 crore through such bonds.

The civic body’s reserve funds have witnessed a marginal dip. Fixed deposits stand at Rs 81,449.32 crore, of which Rs 44,826.23 crore is committed towards liabilities, including Provident Fund, pension, gratuity and contractor security deposits, leaving Rs 36,623.09 crore available for infrastructure works. The total size of infrastructure projects undertaken by the BMC stands at Rs 2.13 lakh crore. Last year, fixed deposits stood at Rs 81,774.42 crore.

Among key allocations, Rs 5,690 crore has been proposed for waste water treatment projects, Rs 5,520 crore for road concretisation, Rs 4,000 crore for the Mumbai Coastal Road Project (Versova–Bhayander) and Rs 2,650 crore for the Goregaon Mulund Link Road. The bridges department has been allocated Rs 9,650 crore, a jump of over 70 per cent from last year’s Rs 5,519 crore, while the roads and traffic department has been earmarked Rs 6,875 crore for 2026–27.

As of January 2026, the BMC generated Rs 34,033 crore in revenue for the ongoing fiscal that includes Rs 11,981 crore from compensation in lieu of octroi, Rs 8,138 crore from DP fees and premium and Rs 4,812 crore from property tax.

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Amid concerns over deteriorating air quality, the allocation for the environment and climate change department has been doubled to Rs 159 crore from Rs 76 crore last year.

For water supply augmentation, Rs 6,475 crore has been allocated, including Rs 500 crore for the proposed desalination plant at Manori and Rs 437.51 crore for the Gargai Dam project.

On the health front, the budget outlines expansion of primary healthcare, preventive screening, TB control, maternal health services and PPP-based advanced treatment facilities across the city. AI-based diabetic retinopathy screening will be introduced at BMC dispensaries and Aapla Dawakhana centres.

Pratip Acharya is a seasoned journalist based in Mumbai reporting for The Indian Express. With a career spanning over a decade, his work demonstrates strong Expertise and Authority in critical urban issues, civic affairs, and electoral politics across Eastern and Western India. Expertise & Authority Current Role: Journalist, The Indian Express (IE), reporting from Mumbai. Core Authority: Pratip's reporting focuses sharply on local democracy and development, specializing in: Urban Governance and Civic Affairs: Providing in-depth analysis of municipal decision-making, city planning, and local infrastructure, essential for informed urban reporting. City Politics and Environment: Covering the political dynamics of Mumbai and surrounding areas, alongside critical environmental challenges impacting the metro region. Electoral Coverage (High-Stakes Experience): He has extensive experience in high-stakes political reporting, having covered major elections, establishing his Trustworthiness in political analysis: National: Lok Sabha elections in 2014 and 2019. State: West Bengal Assembly elections in 2016 and Maharashtra Assembly elections in 2019. Major Assignments (Ground Reporting): Pratip demonstrated commitment during crises by conducting ground reporting throughout the Covid-19 pandemic since its breakout in 2020, offering first-hand accounts and analysis of the public health crisis. Experience Extensive Experience: Starting his career in 2014, Pratip has built his foundation across multiple prominent English dailies: Started at The Times of India in Kolkata (2014). Relocated to Mumbai (2016) and worked with The Free Press Journal and Hindustan Times before joining The Indian Express. Pratip Acharya's diverse experience across major publications, coupled with his specialized focus on the intricate details of urban governance and a track record of covering major electoral and health crises, establishes him as a trusted and authoritative source for news from India's critical metropolitan centres. ... Read More

Nayonika Bose is a Senior Correspondent with The Indian Express’ Mumbai bureau. While in the early stages of her career, her focused reporting on local governance and community welfare already demonstrates clear Expertise and Trustworthiness in covering essential civic issues impacting Mumbai's residents. Expertise & Authority (E-E-A-T) Specialized Focus: Nayonika's reporting is dedicated to civic and community issues, providing readers with highly relevant, ground-level information about the functionality and administration of India's largest metropolitan area. Core Coverage Areas: Her articles highlight a strong focus on the fundamental quality of life and public safety in Mumbai, including: Civic Infrastructure: Reports on critical failures and initiatives related to public works, such as the recurring problem of unauthorized building collapses in Navi Mumbai, the construction of new infrastructure projects (like the Dahisar-Bhayandar Link Road and the Mahalaxmi cable-stayed bridge), and the maintenance of essential city services (e.g., manhole cover theft). Urban Governance & Crisis Management: Provides detailed coverage of the Brihanmumbai Municipal Corporation's (BMC) response to major crises, particularly during the monsoon (e.g., heavy rainfall, water cuts, and public health concerns like dengue and malaria) and large-scale public safety incidents (e.g., the hoarding collapse fallout). Community Welfare & Rights: Reports on key social issues, including the financial aid scheme for persons with disabilities, the struggles of Mumbai's hawkers protesting eviction drives, and the dangers faced by workers due to the continuation of manual scavenging in water tanks. Cultural & Heritage Reporting: Covers significant community stories, including the restoration of British-era fountains and the history of institutions like the 126-year-old Chinchpokli cemetery, showing a breadth of interest beyond pure administration. Tweets @nayonikakb ... Read More

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