Rs 80,953 Cr Budget: BMC puts its biggest bet on four mega projects, allocates 42% of capex

BMC Budget 2026-27: The Brihanmumbai Municipal Corporation (BMC) has announced its Budget Estimates 2026-27, which total Rs 80,952.56 crore. This budget shows an increase of around 8.8 per cent from the previous year. Of the total outlay, capital expenditure (capex) has been pegged at Rs 48,164.28 crore, while 42 per cent of this budgeted amount has been allocated to four major infrastructure initiatives.

Four projects that command the lion’s share of capex

Together, the following four mega projects account for around 42 per cent of total capital spending:

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1) Mumbai Coastal Road (South & North)

• The Coastal Road remains BMC’s single largest infrastructure bet.
• Rs 950 crore has been allocated for the South Coastal Road, while
• Rs 4,000 crore is earmarked for the North Coastal Road stretch from Versova to Dahisar.
• The project is aimed at easing east–west traffic pressure and providing seamless north–south connectivity along the western coastline.

2) Goregaon–Mulund Link Road (GMLR)

Widely seen as a game-changer for east–west mobility, the GMLR has received a Rs 2,650 crore allocation in 2026–27, more than doubling the revised estimate of the previous year. Once completed, it is expected to significantly cut travel time between Mumbai’s western suburbs and the eastern corridor.

3) Major roads & traffic infrastructure

BMC has set aside Rs 6,875 crore for roads and traffic-related works, including Rs 5,520 crore for concreting major roads and junctions under Mega Project Phases I and II, along with refurbishment of the Eastern and Western Express Highways and access-controlled corridors.

4) Bridges infrastructure

Recognising the ageing state of Mumbai’s bridges, the civic body has made a consolidated provision of Rs 9,650 crore for the Bridges Department, including Rs 2,300 crore specifically in the capital budget for bridge construction, repairs and rehabilitation.

Infrastructure-centric Budget

The 2026–27 budget reflects a clear tilt towards long-term asset creation. While revenue expenditure stands at Rs 32,698 crore, the capital-to-revenue spending ratio of 60:40 highlights BMC’s focus on infrastructure expansion.

On the revenue side, total income is projected at Rs 51,511 crore, led by:

• Rs 15,550 crore from grant-in-aid (octroi compensation),
• Rs 12,050 crore from development planning,
• Rs 7,000 crore from property tax collections.

Beyond Roads: Health, water and climate action

The budget funding various transportation projects through its marquee projects also supports vital infrastructure development for city operations. The healthcare sector received funding of Rs 7,456 crore, which supports ongoing hospital development projects at Borivali, Kandivali, Nahur, KEM, Nair and LTMG hospitals until 2026-27.

The Budget allocated Rs 6,475 crore for water supply projects, while it dedicated Rs 6,600 crore to construct sewage treatment plants and sewerage disposal systems. The budget dedicated Rs 1,800 crore to support vital stormwater drainage improvements, which require completion before the next monsoon season starts.

BMC demonstrates its commitment to environmental sustainability through financial support of waste-to-energy projects at Deonar, its air-quality monitoring system Project MANAS, its electric sweepers and its climate resilience initiatives under the Mumbai Climate Action Plan.