The Brihanmumbai Municipal Corporation (BMC) has presented a massive Rs 80,952.56 crore budget for the 2026-27 fiscal year, marking an 8.77 per cent increase over last year's Rs 74,427.41 crore outlay.
For the 2025-26 period, revenue income is projected at Rs 51,510 crore, an increase over last year's Rs 43,159 crore. However, revenue expenditure has increased only moderately, from Rs 31,204.53 crore in 2025-26 to Rs 32,698.44 crore this year. The gap between rising income projections and controlled revenue spending hints at the BMC's attempt to tighten overall expenditure.
Capital Spending Back In Focus
Capital expenditure saw a jump of over 14 per cent, increasing from Rs 26,355 crore to Rs 30,069 crore this year. The allocation for major projects, including the Goregaon-Mulund Link Road, sewage treatment plant upgrades, and the extension of the Coastal Road, has increased from Rs 13,310.97 crore to Rs 13,990 crore.
Education Gains Big
The education sector saw a significant boost, with an allocation of Rs 4,248.08 crore, marking a 7 per cent rise from last year's Rs 3,955.64 crore. However, education finances remain under strain due to the civic body's relationship with the state government. The budget confirmed that the Maharashtra government owes the BMC Rs 7,241.38 crore in pending grants as of March 2025, including dues for both primary and secondary schools.
Health Spending Remains Steady
The allocation for the health sector stands at Rs 5,237 crore, a slight decrease from last year's Rs 5,447 crore. After years of post-pandemic expansion, the civic body appears to be consolidating spending while shifting focus toward technology integration and hospital redevelopment. The popular 'Aapla Dawakhana' network, which has served over 1.35 crore citizens, will now introduce AI-based screenings for diabetes and eye diseases.
Environment And Pollution
As pollution continues to be a major concern for Mumbaikars, Rs 159.82 crore has been earmarked for environment and sanitation. Despite worsening AQI levels, the allocation for this sector has reduced from Rs 182 crore last year.
Revenue Drivers: Property Tax And Premiums
Among revenue sources, property tax estimates have increased from Rs 5,200 crore to Rs 7,000 crore. Development Plan (DP) fees and premiums are projected at Rs 12,050 crore, up from Rs 9,700 crore in last year's Budget Estimate. Octroi compensation (a charge that is paid when we cross state or city borders) is expected to rise to Rs 15,550 crore.
