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BMC raises health budget to INR 7,456 crore, plans 16-storey hospital in Kamathipura and AI eye screening

#Law & Policy#India#Maharashtra#Mumbai City
Mumbai News Desk | Last Updated : 1st Mar, 2026
Synopsis

The Brihanmumbai Municipal Corporation (BMC) has allocated INR 7,456 crore for the health department in its 2026-27 budget, marking a marginal increase over last year. A key project includes a 16-storey multi-specialty hospital in Kamathipura, expected to be completed by May 2027. The civic body will also introduce artificial intelligence-based diabetic retinopathy screening and open three dialysis centres under public-private partnership. However, revenue spending has seen only limited growth, raising concerns about operational capacity in existing civic hospitals.

The Brihanmumbai Municipal Corporation has allocated INR 7,456 crore to the health department in the 2026-27 budget, slightly higher than last year's INR 7,380 crore. Of the total outlay, INR 2,219.7 crore has been set aside for capital expenditure, mainly for infrastructure development and equipment purchases.


One of the major announcements is the construction of a 16-storey multi-specialty hospital in Kamathipura, adjacent to the existing Murli Deora Eye Hospital. The project is estimated to cost INR 135 crore and around 30% of the work has already been completed. The civic administration has set a target of May 2027 for completion. The new facility is expected to strengthen secondary and tertiary care services in south Mumbai, where several civic hospitals are operating under pressure.

Apart from infrastructure expansion, the BMC will introduce artificial intelligence-based screening for diabetic retinopathy at select civic dispensaries. The screening will be provided free of cost and aims to detect eye complications among diabetic patients at an early stage. This initiative is being rolled out as a pilot before wider implementation.

The budget also provides for three new dialysis centres to be developed through public-private partnership. These centres are intended to reduce waiting time and improve access to treatment for patients requiring regular dialysis at civic hospitals.

Revenue expenditure, which covers salaries, medicines, maintenance and daily operations, has been pegged at INR 5,237 crore. The increase in this segment is modest compared to capital spending. In the previous financial year, about 17.3% of the health allocation remained unspent. Public health experts have pointed out that while new buildings are being planned, operational funding remains tight, affecting staffing and routine services.

The budget continues with the proposal to include the human papillomavirus vaccine for girls above 14 years under the civic immunisation programme, following approval from the central government. However, the Zero Prescription Policy that had been discussed earlier does not find mention in the current budget.

Over the past two decades, the share of health in the overall BMC budget has reduced compared to earlier years, even though the city's healthcare burden has increased. The latest allocation reflects a focus on infrastructure expansion while maintaining controlled growth in recurring expenditure.

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