Status: Not Approved
HEAD: 24_Mum_RP_Budget
Byline: Richa Pinto
Bmc budget focuses on managing finances amid rising infrastructure liabilities
24rp-budget
Richa Pinto
Mumbai: As the BMC prepares to table its budget for fiscal 2026–27 on Wednesday, expectations of major announcements remain low. Civic officials indicate that the focus will largely be on managing finances rather than unveiling new initiatives. In 2025–26, the BMC earmarked ₹43,162 crore for capital expenditure, of which around ₹20,000 crore was spent till January 31, 2026. The total budget size for the year stood at ₹74,427.41 crore.
The overall outlay is expected to increase this year, driven by several ongoing big-ticket infrastructure projects like the Mumbai Coastal Road (North), tunnelling works for the Goregaon Mulund Link Road (GMLR), the proposed Gargai dam project, and desalination plants. While the civic body is unlikely to propose new taxes, officials said the budget may outline fresh avenues for revenue generation as liabilities continue to mount.
A look back at last year’s budget shows why expectations remain muted. Some of the interesting proposals announced last year are yet to move beyond paper. Among them is the much-touted Mumbai Eye—a giant observation wheel envisioned on the lines of the London Eye, proposed under a PPP model at a suitable city location.
The project, flagged as a potential tourism boost, has not seen any visible progress, and neither has the Mumbai public park plan.
A civic official said, “The plan for having a Mumbai Eye was proposed by the former guardian minister back then, making it to the budget.”
Financial pressures continue to dominate the civic body’s books. As of January 31, 2026, BMC’s fixed deposits stood at a total of ₹81,449 crore. To meet mounting expenses, the BMC is expected to further dip into its fixed deposits, which are projected to fall to around ₹77,000 crore by the end of the financial year.
This drawdown comes against the backdrop of infrastructure-related liabilities that climbed to an all-time high of nearly ₹2 lakh crore. In an effort to ease the burden, the BMC already sought special funding support from the govt of Maharashtra, requesting that mega projects such as the Coastal Road (North) and the Goregaon Mulund Link Road be classified as Vital Urban Transport Projects. Such a designation would open the door to additional state funding. However, civic officials say the proposal is still awaiting a concrete response.
Municipal bonds are also likely to be announced. According to officials, the civic body is currently in the accreditation and credit rating process, a mandatory requirement before any bond issuance.
Despite being India’s richest civic body with an annual budget of approximately ₹75,000 crore last year, BMC so far never issued a municipal bond to raise funds from the capital market, as it earns heavily from property tax, water charges, development fees, and premiums. So far, it always funded all its big-ticket projects like the Mumbai Coastal Road, constructed at a cost of ₹140,000 crore, the Goregaon Mulund Link Road (approximately ₹15,942 crore), and sewage treatment plant projects (₹30,000 crore) through its own surplus and bank deposits. At any point, BMC holds fixed deposits running into tens of thousands of crores, which made borrowing seem unnecessary, officials said.
Graphics:
BMC’s fixed deposits:
January 2026: ₹81,449 crs
March 2025: ₹79,498 crs
March 2024: ₹82,737 crs
March 2023: ₹86,401 crs
March 2022: ₹91,690 crs
March 2021: ₹78,745 crs
Budget presentation: February 25, 2026
Total budget size over the years (outlay):----
Budget for the year 2025–26: ₹74,427.41 crore
Budget for the year 2024–25: ₹65,180.79 crore
Budget for the year 2023–24: ₹52,553.74 crore
----Budget for the year 2022–23: ₹43,491.20 crore
----Budget for the year 2021–22: ₹35,962 crore
Year-wise capital expenditure done by BMC:
2021–22: ₹12,535 crore
2022–23: ₹13,957 crore
2023–24: ₹18,281 crore
2024–25: ₹27,955 crore
2025–26: ₹19,443 crore (up to January 31, 2026) MSID:: 128753571 413 |
