Mumbai, Feb 25 (.) The Brihanmumbai Municipal Corporation on Wednesday presented its much awaited budget for the financial year 2026-27, proposing an unprecedented outlay of Rs 80,952.56 crore, marking the first time its annual budget has crossed the Rs 80,000 crore mark.
Infrastructure development and long term urban projects bag the bulk of the increased outlay.
The new budget reflects a sharp rise in spending, registering an increase of more than Rs 6,500 crore over the Budget Estimates for 2025-26, which stood at Rs 74,427.41 crore. With this expansion, the BMC continues to retain its position as the country’s wealthiest municipal corporation.
A significant portion of the outlay has been directed towards capital expenditure. The corporation has proposed Rs 48,164.28 crore in capital spending for 2026-27, underlining its commitment to infrastructure development and long-term urban projects.
Among the major allocations, the Mumbai Sewage Disposal Project has been earmarked Rs 5,690 crore to upgrade wastewater treatment facilities and enhance environmental sustainability. The Goregaon–Mulund Link Road project, aimed at improving east–west connectivity and reducing traffic congestion, has received a provision of Rs 2,650 crore.
The Coastal Road (North) project, which includes the Versova–Dahisar Link Road, and is expected to significantly improve north–south travel across the western suburbs, has been allocated Rs 4,000 crore.
In addition, the Roads Cement Concretisation Mega Project has been granted Rs 5,520.48 crore. The initiative seeks to replace asphalt roads with cement concrete surfaces to improve durability, cut maintenance expenditure and provide smoother travel conditions.
In comparison, the 2025-26 budget had set a then record outlay of Rs 74,427 crore, reflecting a 14 per cent increase over the preceding year. Of that, 58 per cent, amounting to Rs 43,162 crore, was dedicated to asset creation — the highest proportion in the BMC’s history.
Key measures in the previous budget included the implementation of the Universal Footpath Policy with an allocation of Rs 100 crore, and the deployment of 100 battery-operated suction machines to address dust pollution. The civic body had also expanded the Aapla Dawakhana network by adding 25 new clinics and three physiotherapy centres.
For the first time, a proposal was introduced to levy tax on commercial establishments operating in slum areas, with the aim of generating Rs 350 crore in additional revenue. Additionally, the BMC had extended a grant of Rs 1,000 crore to the BEST undertaking to support the procurement of electric buses and to offset operational losses.
The budget proposals were formally submitted by Municipal Commissioner Bhushan Gagrani to Standing Committee Chairman Prabhakar Shinde.
Officials said the 2026-27 financial plan is built around a three-pronged strategy. With the Standing Committee resuming its role, the administration has renewed its focus on decentralisation at the ward level, responding to criticism that local requirements were being overshadowed by large city-wide infrastructure projects in recent years.
As of January 31, 2026, outstanding dues from various Maharashtra government departments, including grants-in-aid and property tax payments, have accumulated to Rs 10,948.58 crore, according to civic officials. . AAA-SP CDS