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BMC proposes INR 80,952.56 crore budget for FY27 with higher capex focus

#Law & Policy#Infrastructure#India#Maharashtra#Mumbai City
Last Updated : 2nd Mar, 2026
Synopsis

The Brihanmumbai Municipal Corporation (BMC) has proposed a total budget outlay of INR 80,952.56 crore for the financial year 2026-27, reflecting an increase of 8.77 per cent over the previous year's estimate. Capital expenditure has been set at INR 48,164.28 crore, marking a rise of nearly 11.6 per cent compared to the revised allocation for FY26, underscoring a continued focus on infrastructure-led spending. Revenue expenditure has also been increased, alongside higher projected revenue income driven partly by improved property tax collections. The budget was tabled earlier this week by Municipal Commissioner Bhushan Gagrani and comes after downward revisions to both capital and revenue spending in the ongoing fiscal following expenditure rationalisation measures.

The Brihanmumbai Municipal Corporation has proposed a budget outlay of INR 80,952.56 crore for the financial year 2026-27, signalling a moderate expansion in civic spending as the country's largest municipal body continues to prioritise capital-intensive infrastructure projects.


The proposed allocation represents an 8.77 per cent increase over the budget estimate of INR 74,427.41 crore for 2025-26. The budget was tabled earlier this week by Bhushan Gagrani in the civic body, which oversees municipal governance in Mumbai.

Capital expenditure for FY27 has been pegged at INR 48,164.28 crore, reflecting an increase of around 11.59 per cent over the revised estimate of INR 39,159.51 crore for the current fiscal. The original capital outlay for 2025-26 had been set at INR 43,162.23 crore but was later revised downward, indicating slower execution or reprioritisation of projects during the year.

Revenue expenditure for the coming financial year has been proposed at INR 32,698.44 crore, which is about 15.71 per cent higher than the revised estimate of INR 28,257.91 crore for FY26. In the ongoing fiscal, revenue expenditure was initially estimated at INR 31,204.53 crore but subsequently reduced by nearly INR 2,947 crore following expenditure rationalisation measures undertaken by the civic body.

On the income side, the BMC has projected revenue receipts of INR 51,510.94 crore for FY27, marking a 19.35 per cent increase over the previous budget estimate of INR 43,159.40 crore. The revenue income estimate for 2025-26 was later revised upward to INR 46,778.12 crore, reflecting an increase of 8.38 per cent over the original projection.

Property tax, one of the BMC's largest and most stable revenue streams, is expected to contribute INR 7,000 crore in FY27. This compares with a revised estimate of INR 6,200 crore for the current fiscal, which itself was higher than the original estimate of INR 5,200 crore, suggesting improved collections and enforcement.

As of January 31, 2026, the civic body had incurred revenue expenditure of INR 19,001.88 crore, accounting for about 67.24 per cent of the revised estimate for FY26. During the same period, capital expenditure stood at INR 22,425.16 crore, indicating steady progress on infrastructure-related spending as the financial year nears its close.

Source - PTI

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