Explained : BMC Election 2026: How Mumbai’s civic body became India’s richest local corporation with a Rs 74,000-crore cheque book and Its Impact

Brihanmumbai Municipal Corporation (BMC) election results will be announced today after a nine-year wait. The BMC runs only Mumbai’s day-to-day local affairs, but in reality, it controls one of the largest public budgets in the country. For 2025–26, the civic body has proposed spending Rs 74,427 crore, an amount that rivals, and in several cases exceeds, the budgets of smaller Indian states. This is why the BMC election is not just a local contest, but a high-stakes battle over how India’s financial capital is built, repaired, cleaned, and protected from floods.

BMC Election Results 2026: What local body poll result would mean for state politics

The BMC election results 2026 matter far beyond Mumbai because they decide who controls India’s richest civic body and its Rs 74,000-crore budget. The outcome shows which political alliance has real organisational strength in the state’s most influential urban centre, often setting the tone for Maharashtra politics ahead of Assembly and Lok Sabha battles. Control of the BMC shapes contracts, infrastructure priorities, and local networks that parties rely on across the state. In short, the results are seen as a proxy verdict on the balance of power in Maharashtra, not just a civic win or loss.

Also Read: Mumbai BMC Election Results 2026: Catch all the live updates here

BMC, India’s Richest Local Body

The BMC’s proposed budget for FY 2025–26 stands at Rs 74,427 crore, its highest ever. Nearly 60 percent of this, about Rs 43,162 crore, is earmarked for capital expenditure. In simple terms, most of the money is meant for long-term projects rather than daily expenses.

BMB Budget bigger than states, richer than cities

The scale of the BMC budget becomes clearer when placed next to state finances. Goa plans to spend Rs 28,162 crore in 2025–26. Arunachal Pradesh has budgeted Rs 39,842 crore, Himachal Pradesh Rs 58,514 crore, Sikkim Rs 16,196 crore, and Tripura Rs 31,412 crore. Mumbai’s civic body alone plans to outspend all of them.

Among major cities, the gap is even wider. Delhi’s Municipal Corporation operates on roughly Rs 16,500 crore, while Bengaluru’s BBMP runs on about Rs 19,900 crore. This financial muscle explains why the BMC is often called India’s richest municipal corporation and why control over it carries political weight far beyond Mumbai’s wards.

How BMC earns its money

The BMC’s income does not come mainly from property tax, as many assume. Its revenue is spread across state transfers, fees, premiums, and investment income, a structure that has gained importance after GST.Compensation in lieu of octroi: the biggest pillar
Before GST, Mumbai collected octroi at city entry points. After octroi was removed, the Maharashtra government began compensating the BMC for the loss. For FY 2025–26, this compensation is estimated at around Rs 14,000–15,000 crore. A large share of Mumbai’s civic money now flows through the state government, quietly linking city finances to state politics.

Property tax: important, but not dominant
Property tax remains a key source of income, but it is no longer the largest. For 2025–26, the BMC has projected around Rs 5,200 crore from property tax. The number matters, but it is still smaller than state compensation and several capital-linked inflows.

Development fees and premiums: the urban cash engine
Charges linked to development permissions, FSI premiums, and planning fees have become a major revenue stream. In recent years, these non-tax revenues have been estimated at close to Rs 6,000 crore and continue to play a central role in the BMC’s finances.

Fees, licences, and advertising
The civic body also earns from licensing, outdoor advertising, permissions, and penalties. For FY 2025–26, advertising and licence-related income is projected in the hundreds of crores, with advertising alone expected to cross Rs 300 crore.

Interest income from fixed deposits
For years, the BMC parked large surpluses in fixed deposits and earned steady interest. RTI-based reports show that these deposits have fallen sharply since FY22, as more money is pushed into infrastructure works. In simple terms, the financial buffer is shrinking as spending speeds up.

Where BMC spends its money

This is where the political stakes of the election become clear.

Infrastructure dominates everything
Capital expenditure of Rs 43,162 crore forms the single biggest spending block. It covers roads, concretisation, stormwater drains, sewage systems, bridges, flyovers, and coastal protection projects.

Major allocations include Rs 5,545 crore for the Mumbai Sewage Disposal Project, Rs 4,000 crore for Phase 2 of the Versova–Dahisar coastal road, Rs 3,111 crore for citywide road concretisation, Rs 1,958 crore for the Goregaon–Mulund Link Road tunnel, and Rs 1,516 crore for completing and maintaining the south Mumbai coastal road.

Day-to-day civic services
Revenue expenditure keeps the city running. This includes sanitation, solid waste management, public hospitals, primary education, water supply operations, and staff salaries and pensions. These services attract less attention than big projects but trigger public anger when they break down.

Support for city transport, especially BEST
The BMC also funds the Brihanmumbai Electric Supply and Transport undertaking. For 2025–26, Rs 1,000 crore has been set aside for BEST. Since 2012–13, total civic support to BEST has crossed Rs 11,000 crore.