The Brihanmumbai Municipal Corporation (BMC) presented its 2026–27 budget on February 25, with a substantial outlay of Rs 80,952 crore, signalling a renewed focus on Mumbai’s infrastructure, urban connectivity, and real estate development. Tabled before the standing committee after a four-year hiatus, the budget emphasises capital projects, water security, roads, and urban renewal while maintaining fiscal discipline with no new taxes proposed.
A senior civic official told the Hindustan Times, “The budget increases every year by at least 5%, so it is a given that it will touch the Rs 80,000 mark.” The projected increase is driven by higher property tax collections, automatic revisions linked to ready-reckoner rates, stricter recovery measures, and enhanced premiums from real estate developments.
Major Urban and Infrastructure Investments
Infrastructure remains the backbone of the 2026–27 budget. Ongoing projects worth Rs 2.32 lakh crore will receive continued emphasis, with priority given to the Gargai Dam in Palghar, the proposed Manori desalination plant, upgrades to sewage treatment plants, and the Versova–Dahisar Link Road, a critical arterial project for western suburbs connectivity.
The Mumbai sewage disposal project has been allocated Rs 5,690 crore, while the cement road mega project receives Rs 5,520 crore. Meanwhile, key urban mobility projects such as the Goregaon–Mulund Link Road (GMLR) and the northern extension of the Coastal Road from Versova to Bhayandar are set to improve commuter access, decongest traffic, and increase the attractiveness of surrounding real estate.
The Gargai Dam, valued at Rs 3,000 crore, is a flagship water security initiative. Designed to add 440–450 million litres per day to Mumbai’s supply via a 1.6–2.5 km tunnel to Modak Sagar, it is expected to be completed by 2029. The project underpins growth in the northern suburbs and supports residential and commercial development in Palghar and adjoining areas.
Progress on Previous Projects
Several large-scale proposals from the 2025–26 budget remain in flux. The Rs 90-crore 5.6 km elevated corridor from Orange Gate to Grant Road may be shelved due to overlaps with the MMRDA’s planned tunnel between Orange Gate and Marine Drive. Meanwhile, landmark projects such as the Mumbai Eye continue to remain conceptual.
Capital Expenditure and Real Estate Implications
Capital expenditure as a percentage of the budget has steadily increased, reflecting a pro-development agenda:
- 2017–18: 25%
- 2024–25: 47%
- 2026–27: 60%
Enhanced infrastructure, accelerated project timelines, and strategic allocations in water and road connectivity are expected to boost investor confidence, catalyse residential and commercial developments, and create more robust urban ecosystems across Mumbai.
Source: CNBC TV18
