The Brihanmumbai Municipal Corporation (BMC) has announced that Rs 36,623.09 crore from its fixed deposits will be deployed to fund key infrastructure projects across Mumbai under the 2026-27 budget. BMC Commissioner Bhushan Gagrani presented an overall budget of Rs 80,952.56 crore, marking an 8.77% increase from the 2025-26 estimate of Rs 74,427.41 crore. The civic body continues to hold the distinction of being India’s richest municipal corporation in terms of both budget size and cash reserves.
Currently, BMC’s total fixed deposits stand at Rs 81,449.32 crore. Of this, Rs 44,826.23 crore is earmarked for long-term obligations such as pensions and contractor security deposits, leaving Rs 36,623.09 crore available for strategic infrastructure investments as part of a broader urban transformation plan.
The budget also signals a shift toward exploring municipal bonds as a new funding avenue, initially targeting water supply projects, including the Gargai dam, officials said. This marks the civic body’s first serious move toward market borrowing beyond internal reserves.
Under the Mega Mumbai Makeover initiative, capital expenditure is projected at Rs 48,164.28 crore, roughly 60% of the total budget, reflecting an 11.59% rise over the current year’s revised estimates and highlighting the administration’s focus on long-term asset creation.
Major allocations include Rs 4,000 crore for the Versova-Dahisar stretch of the Coastal Road (North), Rs 5,690 crore for modernising sewage treatment plants, and Rs 5,520.48 crore for the ongoing road concretisation project. The Goregaon-Mulund Link Road has been allotted Rs 2,650 crore to ease east-west traffic, while water security receives Rs 6,475 crore, including Rs 500 crore for the Manori desalination plant and Rs 437.51 crore for the Gargai project.
Healthcare also sees a boost with Rs 7,456.80 crore earmarked for completing multi-speciality and peripheral hospitals, reinforcing BMC’s continued focus on expanding public health infrastructure post-pandemic.
Overall, the 2026-27 budget underscores a strategy of leveraging strong internal reserves while cautiously exploring market borrowing through bonds.
Source: Prop News Time
