MUMBAI: The Brihanmumbai Municipal Corporation (BMC) on Wednesday tabled its Rs 80,952.56 crore annual budget for the financial year 2026-27, marking an 8.77% increase over the 2025-26 budget estimate of Rs 74,427.41 crore. This is the first time in four years that the BMC has presented its budget.
In the recent BMC elections, the BJP secured a majority with 89 seats, while its ally, Shiv Sena, won 29 seats out of the 227-member BMC. The BMC has proposed levying an entertainment tax. According to the budget, the proposal for the entertainment tax will be submitted to the state Urban Development Department, after which it will be implemented.
Additionally, the BMC has increased the premium for Additional Floor Space Index (AFSI) or Transfer of Development Rights (TDR) from 5% to 7.5% for residential projects and from 10% to 12.5% for commercial redevelopment in the city. This move is expected to increase the BMC’s revenue by Rs 26 crore annually. The BMC will also develop tenements under the new Development Plan 2036, which will be sold through a lottery system, generating an estimated Rs 300 crore annually.
The budget also highlights the importance of Mumbai’s textile industry, which has been a backbone of the city’s economic growth and socio-cultural development. To preserve this heritage, the BMC has undertaken the restoration of India United Mills No. 2 & 3 and the development of a 44,000 sq. meter museum by adaptively reusing the existing mill structures post-restoration. An agency has been appointed to execute and maintain this project for 20 years under Corporate Social Responsibility, ensuring no financial burden on the BMC. This initiative aims to create a cultural and tourist attraction for both citizens and foreign visitors.
Furthermore, the BMC plans to construct Grand Entrances and Clock Towers at four key entry points of Mumbai as a tribute to the city’s timeless spirit and identity. These structures will reflect Mumbai’s rich heritage, aesthetic excellence, and architectural character, welcoming citizens and visitors alike.
For the financial year 2026-27, the BMC has proposed revenue expenditure of Rs 32,698.44 crore, about 15.71% higher than the revised estimate of Rs 28,257.91 crore for 2025-26. The revenue expenditure for the current fiscal was initially estimated at Rs 31,204.53 crore but was later reduced by Rs 2,946.62 crore following expenditure rationalization measures.
The estimated revenue income for 2026-27 stands at Rs 51,510.94 crore, 19.35% higher than the previous budget estimate of Rs 43,159.40 crore. The 2025-26 revenue income estimate was later revised upward to Rs 46,778.12 crore, an increase of 8.38%. Property tax revenue, one of the BMC’s key income sources, is projected at Rs 7,000 crore for 2026-27, compared to the revised estimate of Rs 6,200 crore for 2025-26. The original property tax estimate for 2025-26 was Rs 5,200 crore.