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The Brihanmumbai Municipal Corporation (BMC) has utilised around 87% of its capital expenditure budget, spending INR 39,159 crore out of INR 43,162 crore. This marks an increase from the previous year and reflects faster execution of infrastructure projects. Major spending was directed towards sewage treatment upgrades, road concreting, bridges, water supply, and stormwater drainage. While the administration has focused on improving long-term infrastructure, concerns have been raised about gaps in basic civic services and the need for better quality control in project execution.
The Brihanmumbai Municipal Corporation has recorded higher utilisation of its capital expenditure budget, spending INR 39,159 crore out of the total INR 43,162 crore allocated for the financial year. This translates to 87% utilisation, compared to 77% in the previous year, indicating quicker execution of infrastructure projects and improved fund deployment. Advertisement
In the previous financial cycle, the civic body had spent INR 28,755 crore out of INR 37,332 crore. The increase in utilisation highlights a continued focus on capital-heavy development, with the administration prioritising long-term infrastructure creation over routine expenditure. Over recent years, the share of capital spending in the overall budget has steadily increased.
A significant portion of the expenditure was directed towards the Mumbai Sewage Disposal Project, which is valued at over INR 30,000 crore. The project saw spending of INR 6,594 crore, exceeding the initial allocation and leading to revised estimates. It includes the construction and upgradation of seven sewage treatment plants at Worli, Bandra, Dharavi, Versova, Malad, Ghatkopar and Bhandup. The aim is to improve wastewater treatment standards and reduce pollution levels in the city's water bodies.
The roads department accounted for a major share of spending, with INR 5,799 crore used for ongoing road concreting works across Mumbai. The water supply department utilised around 88% of its INR 4,800 crore allocation, reflecting continued investment in strengthening water infrastructure. Meanwhile, INR 4,004 crore was spent on bridge-related works, including repairs and new constructions, and INR 1,181 crore was allocated to stormwater drain projects aimed at reducing flooding during monsoon periods.
The total civic budget stood at around INR 74,427 crore, with nearly 58% earmarked for capital expenditure. Officials indicated that higher utilisation ensures funds are effectively deployed within the financial year, as unspent allocations typically lapse. The administration has been consistently increasing capital allocations in recent budgets to accelerate infrastructure upgrades.
At the same time, concerns have been raised regarding the balance between large-scale infrastructure projects and basic civic services. A corporator stated that while major projects such as road and sewage upgrades are important, essential services like public healthcare infrastructure still require more attention. An RTI activist also pointed out that despite higher spending, the quality of work in some projects remains inconsistent, highlighting the need for stricter monitoring and accountability.
To support future funding requirements, especially for large environmental infrastructure like sewage treatment, the civic body is exploring raising funds through green bonds. The proposal is currently undergoing necessary accreditation and credit rating processes before any issuance is considered.
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