BMC unveils ₹80,952 crore Budget with plans to raise green bonds

BMC announces an ₹80,952 crore Budget focusing on green bonds and sustainable projects to enhance Mumbai's infrastructure and environment.

The municipal green bonds aim to finance projects, including wastewater treatment and desalination. According to BMC, the bonds will help achieve Mumbai’s Climate Action Plan, attracting Environmental, Social and Governance-focused institutional investors. 

“BMC has already initiated the process of appointment of Credit Rating Agency and will be initiating further process for raising Municipal Green Bonds to finance its sustainable development,” stated in the Budget statement. 

Expecting to raise ₹500 crores, BMC commissioner Bhushan Gagrani said, “BMC never invested in capital markets. Raising green bonds is incentivised and subsidised by the Government of India. There is a possibility in future that we can claim the carbon credits.” 

Bhushan Gagrani presented the Budget to Standing Committee Chairman Prabhakar Shinde. The Budget presented for the financial year 2026-27 proposes a total outlay of ₹8,0952.56 crore, marking an increase from ₹7,4427.41 crore allocated in 2025-26. This budget is significant as it has been presented for the first time after the end of the administrative rule and during the first BJP’s tenure, which ended the 25 years of rule of Shiv Sena. 

The total budget announced is ₹80,862 crores, out of which 60% is allocated for capital expenditure with ₹48,164 crore and 40%, i.e. ₹32,698 crore, has been allocated as revenue expenditure.

Other sources to augment the revenue are Internal Temporary Transfer (ITT), Modified one-time premium, sale of residential tenements, auction of plot on lease, monetise its revenue-generating assets through Infrastructure Investment Trusts (InviTs), and others.