The Brihanmumbai Municipal Corporation (BMC) on Wednesday announced a budget of Rs 80,952.56 crore for the financial year 2026-27, 8.77% higher than previous year’s budget of Rs 74,427.41 crore. While no new big ticket infrastructure projects have been announced in the budget, the civic body‘s key focus has been about pushing the existing projects along with augmenting water supply in the city.In a first, the BMC in its budget has announced that it is set to raise municipal green bonds for financing its sustainable infrastructure projects such as waste water treatment and desalination plants. This is aimed at augmenting revenue within the BMC and comes along the heels of the Finance minister earlier this month announcing a Rs 100 crore incentive for a single municipal bond issuance of Rs. 1000 crore in budget 2026.Furthermore, the budget also shows that BMC’s reserve funds have witnessed a marginal dip this year as well. The civic body’s reserves in fixed deposits stand at Rs 81,449.32 crore at present, of which Rs 44826.23 crore is committed to liabilities such as provident fund, pension fund, and gratuity, and security deposits from contractors. While Rs 36,623.09 crore is available for infrastructure work. At present, the total size of infrastructure work taken by BMC stands at Rs 2.13 lakh crore.Last year, 2025-26, BMC had fixed deposits of Rs 81774.42 crore.Of the total budget announced, 60 percent have been allocated for capital expenditure with Rs. 48,164 crore marked as capital expenditure.Meanwhile, Rs. 32,698 crore has been proposed as revenue expenditure.The budget has seen key allocations to boost infrastructure projects in Mumbai. The highest allocation of Rs 5,690 crore have been proposed for the STP projects, Rs 5,520 crore has been allocated for road concretisation, Rs 4,000 crore has been allocated for the Mumbai Coastal Road Project (Versova-Bhayander) and Rs 2,650 for the Goregaon Mulund Link Road (GMLR) project.“The budget reflects our commitment to strengthen Mumbai’s civic infrastructure, improving essential services and ensuring balanced, sustainable growth,” said Bhushan Gagrani, municipal chief as he presented the budget before the standing committee, adding, “Through disciplined financial management and sustained implementation, we have maintained fiscal stability while delivering significant progress across various sectors.”Story continues below this ad“The budget is focused on the sectors of financial prudence, building trust and further through infrastructure, investing in health and education, sustainability and greening, emergency and disaster preparedness as well as ease of doing business alongside administrative efficiency,” said Gagrani.Furthermore, the BMC has estimated a total provision of Rs. 9,650 crore for the bridges department – which marks a significant jump of over 70 percent from the revised estimate of Rs. 5519 crore in the previous fiscal and Rs. 6875 crore to the roads and traffic department for FY2026 – 27.Amid rising concerns of deteriorating air quality, the BMC has also doubled its allocation for the environment and climate change department. This year, the BMC has made a provision of Rs. 159 crore for this department, compared to Rs 76 crore from last year.Furthermore, the BMC has allocated Rs 6,475 core for augmenting water supply in Mumbai. Rs 500 crore have been allocated for construction of the BMC’s ambitious desalination plant at Manori, Rs 437.51 crore have been allocated for the Gargai Dam project – a pet project of chief minister Devendra Fadnavis to augment Mumbai’s water supply.Story continues below this adThe civic body’s total reserves position stands at Rs 81449.32 crore, including Rs 44826.23 crore tied up for committed liabilities. The total committed liability towards major infrastructure projects is Rs 213145.84 crore.The budget reflects a continued upward trend in civic spending, with the outlay nearly tripling since 2018-19 when the total outlay was Rs 27258 cr.