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MMRDA unveils Rs 48,072 cr Budget, projects first surplus in eight years
As in previous years, infrastructure dominates the outlay, accounting for 87 per cent of total expenditure, or over Rs 42,000 crore.
MMRDA has invited bids for consultants for the 11.8 km Kalyan-Ulhasnagar extension. With the DPR ready, this ₹4,063 crore project is headed for state approval in April. A major win for commuters in the far suburbs. (File)
The Mumbai Metropolitan Region Development Authority on Monday presented a Rs 48,072.40 crore Budget for 2026 to 27, projecting a marginal surplus of Rs 17 lakh, its first since 2017-18, even as infrastructure spending, borrowings and interest repayments hit record highs.
The authority has pegged its revenue at Rs 48,072.57 crore, narrowly exceeding expenditure. This marks a turnaround from last year, when revenue estimates were revised down from Rs 36,938.69 crore to Rs 30,316.18 crore and expenditure fell short of projections, declining from Rs 40,187.41 crore to Rs 31,313.13 crore.
As in previous years, infrastructure dominates the outlay, accounting for 87 per cent of total expenditure, or over Rs 42,000 crore.
For the first time, Rs 4,000 crore has been earmarked for the Third Mumbai project, a planned urban region across 124 villages in the influence zone of the Atal Setu and Navi Mumbai International Airport. The authority has already spent Rs 2,000 crore on the project in 2025-26.
Among other big ticket projects, Rs 1,189 crore has been allocated for the proposed 70 km integrated tunnel corridor connecting the Bandra Worli Sea Link, BKC, the bullet train station and Terminal 2 of the Mumbai airport.
The total cost of the tunnel project is estimated at Rs 24,000 crore.
Despite projecting a surplus, the Budget is underpinned by record borrowings of Rs 23,711.16 crore, the highest in five years. In 2025-26, the authority had estimated borrowings of Rs 22,327.35 crore but raised Rs 15,548.17 crore.
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The rising debt has sharply increased interest payments. From Rs 66 crore in 2022-23, interest outgo is expected to jump to Rs 3,247 crore in 2026 to 27, nearly a 50 fold rise over five years.
Land sales are projected to contribute Rs 11,177 crore this year, compared with Rs 4,582 crore last year, bolstering revenue.
However, income from operational assets such as tolls from the Atal Setu, Metro Lines 2A and 7, the monorail and the Surya Regional Water Supply project has underperformed. While Rs 305 crore was initially projected in 2025-26, estimates were revised to Rs 238
crore. For 2026 to 27, revenue of Rs 441 crore is expected.
Metropolitan Commissioner Sanjay Mukherjee described the surplus as the result of fiscal discipline and calibrated capital mobilisation.
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Chief Minister Devendra Fadnavis called it a “defining milestone” that reflects investor confidence and positions the Mumbai Metropolitan Region as globally competitive. Deputy Chief Minister and MMRDA Chairman Eknath Shinde said the 87 per cent allocation to projects demonstrated focused governance.
Past trends, however, show that actual infrastructure spending has often fallen short of projections. In 2025-26, against an intended spend of Rs 35,000 crore on infrastructure, the authority spent just over Rs 26,000 crore, with several Metro lines and road projects witnessing delays.
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