The Brihanmumbai Municipal Corporation (BMC) on Wednesday unveiled its Rs 80,952.56 crore budget for the 2026-27 fiscal year, reflecting an 8.77% increase over the previous year’s estimate of Rs 74,427.41 crore. This marks the first budget presentation by the civic body in four years.
Following the recent BMC elections, the BJP holds a majority with 89 seats, while its ally, Shiv Sena, secured 29 out of the 227-member corporation. Among the key proposals is the introduction of an entertainment tax. “The proposal will be submitted to the state Urban Development Department for approval before implementation,” the budget document states.
The BMC has also revised premiums for Additional Floor Space Index (AFSI) or Transfer of Development Rights (TDR), increasing them from 5% to 7.5% for residential projects and from 10% to 12.5% for commercial redevelopment. This adjustment is expected to generate an additional ₹26 crore annually. Furthermore, under the Development Plan 2036, tenements will be sold through a lottery system, estimated to contribute ₹300 crore per year.
The budget places emphasis on preserving Mumbai’s textile heritage. Restoration of India United Mills No. 2 & 3 and the creation of a 44,000 sq. meter museum are planned, with a dedicated agency managing the project for 20 years under CSR, ensuring no cost to the BMC. Additionally, the civic body will construct Grand Entrances and Clock Towers at four major city entry points, highlighting Mumbai’s architectural legacy.
For 2026-27, revenue expenditure is projected at Rs 32,698.44 crore, up 15.71% from the revised 2025-26 estimate of Rs 28,257.91 crore. Estimated revenue income stands at Rs 51,510.94 crore, 19.35% higher than the previous budget. Property tax is expected to yield Rs 7,000 crore, compared to Rs 6,200 crore in 2025-26, reinforcing the BMC’s focus on expanding its revenue streams while supporting infrastructure, cultural, and heritage projects across the city.
Source: The New Indian Express
