Mumbai civic body clears record ₹80,952 crore FY27 budget with 60 per cent capital spend driving infra push

Brihanmumbai Municipal Corporation headquarters building in Mumbai
Brihanmumbai Municipal Corporation headquarters in Mumbai. File Photo

Mumbai’s civic body, the Brihanmumbai Municipal Corporation (BMC), has approved a ₹80,952.56 crore budget for the financial year 2026-27, marking the highest-ever outlay in its history and reinforcing its infrastructure-led spending strategy.

The ₹80,952 crore budget for 2026-27 was reportedly approved at 1.16 am on Friday, 1 May, after intense deliberations.

The budget, presented by Municipal Commissioner Bhushan Gagrani, is 8.77 per cent higher than the FY26 outlay of ₹74,427.41 crore, continuing the steady expansion in civic expenditure driven largely by capital investment.

A key highlight is the scale of capital expenditure, which is pegged at ₹48,164 crore, accounting for nearly 60 per cent of the total outlay.

The allocation reflects a sustained push towards long-term asset creation, particularly in areas such as roads, drainage, water supply and urban mobility.

Major allocations have been directed towards core infrastructure and utility projects.

These include ₹5,690 crore for sewage treatment and disposal infrastructure, ₹5,520 crore for road concretisation works, and around ₹4,700 crore for the Coastal Road (North) project.

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In addition, ₹2,650 crore has been allocated for the Goregaon-Mulund Link Road, while ₹2,324 crore has been earmarked for water conveyance and supply systems.

The budget also provides significant funding for social sectors, with ₹4,248 crore allocated for education and over ₹7,400 crore for healthcare, covering hospital upgrades, capacity expansion and improvements in municipal schools.

On the revenue side, the BMC has projected total receipts of ₹51,510.94 crore, with major contributions expected from property tax, development charges and compensation-related inflows.

To support its capital-heavy spending programme, the civic body plans to utilise ₹36,623 crore from its reserves, including fixed deposits, continuing its strategy of funding infrastructure expansion through internal resources.

The budget projects a marginal surplus of around ₹89 crore for FY27.

Overall, the FY27 budget underscores BMC’s continued infrastructure-first approach, with a clear concentration of spending on roads, sewage systems, water supply and key connectivity projects.

With multiple large-scale works underway simultaneously, the focus now shifts to execution timelines and delivery efficiency, which will determine how effectively this record outlay translates into on-ground improvements across Mumbai.

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