BMC Budget : The Largest Budget in the History of Mumbai Municipality, Key Announcements in the 2026–27 Budget
Mumbai: The richest municipal corporation in Maharashtra, the Brihanmumbai Municipal Corporation, has presented the largest budget in history for 2026–27 — ₹80,952.56 crore. This budget was presented to Standing Committee Chairman Prabhakar Shinde by Commissioner Bhushan Gagrani on February 25, 2026. The biggest highlight of this budget is the decision to use ₹36,623 crore from the corporation's deposits for projects, which will help improve various infrastructure facilities in the city.
Decision to Break Deposits — What Lies Ahead?
The municipal corporation currently has a total deposit stock of ₹81,449.32 crore, but ₹44,826.23 crore of this is reserved as a binding obligation and cannot be broken. However, the remaining ₹36,623.09 crore has been clearly decided in the budget to be used for various infrastructure schemes, projects, and development works. As a result, after the change of power in the municipal corporation, the work of breaking these deposits to boost development will begin.
Increased Budget and Its Features
This year's budget has increased by nearly ₹6,525 crore compared to last year's ₹74,427.41 crore, resulting in a growth rate of approximately 8.77%. This is the first budget under the leadership of the newly elected councilors after four years, as municipal elections were held. A total capital expenditure of ₹48,164.28 crore is proposed, which will be utilized in various major projects in the city.
Provisions for Important Projects
Bridge Construction and Repairs:
101 bridge construction and repair works are ongoing in Mumbai. Out of these, 24 works have been completed, and another 23 works will be completed by March 2026. The target is to complete the remaining 54 bridge works in the next three years. ₹9,650 crore has been reserved for new works, including the 6th phase of the Coastal Road.
Coastal Road and Link Road:
₹4,000 crore has been allocated for the Versova–Dahisar Coastal Road, and ₹2,650 crore for the Goregaon–Mulund Link Road, which will help reduce traffic problems in the city.
Funding for Health Services:
A total of ₹1,062 crore has been allocated for various hospitals, including Sion Hospital, Rajawadi Hospital, Nair Hospital, and Bandra Cancer Hospital. This will help in the development of health facilities and strengthen the entire health network.
Mithi River Project and Green Belt:
₹286.25 crore is reserved for projects related to the Mithi River. Additionally, ₹950 crore is reserved for the development of a green belt and parks over an area of 53 hectares.
Smart Parking Project:
₹6,875 crore is reserved for setting up on-street and off-street parking under the Mahapalika PPP (Public-Private Partnership) model, which will help address parking issues.
Other Important Announcements
Entertainment Tax Applied:
The entertainment fee exemption provided by the Maharashtra government will remain applicable until September 30, after which the municipality will independently collect the entertainment tax.
QR Code Based Vendor Certificate:
The process of issuing QR code-based certificates to authorized vendors in the municipal area has been initiated. This will help in taking action against unauthorized vendors and maintain a clear identification of authorized vendors.
Substantial Provision for Education:
BMC has allocated ₹4,248.08 crore for education, which includes school infrastructure, digital classrooms, expansion of education, and student welfare programs.
Environment and Climate Action Fund:
₹159.82 crore is reserved for the environment department for climate change and pollution control, which will help combat climate and pollution issues in the city.
Impact of the New Budget
This budget is expected to give a significant boost to infrastructure, bridge construction, roads, healthcare services, schools, and public facilities in Mumbai. However, some villagers believe that the funds need to be used in a timely and transparent manner, as many projects were delayed last year due to unspent funds.