MCG Greenlights Rs 1,875 Crore Budget for 2026-27 with Significant Fiscal Shifts
The Municipal Corporation of Gurgaon (MCG) House, in a special meeting held on Wednesday, gave its approval to a substantial budget of Rs 1,875 crore for the financial year 2026-27. This marks a notable 25% increase in projected expenditure compared to the Rs 1,497 crore allocated for 2025-26. As of February 28, the current fiscal year has seen an expenditure of Rs 1,376 crore, indicating active spending patterns.
Revenue Projections and Fiscal Realism
On the revenue front, MCG anticipates a robust growth of 22%, with total income expected to reach Rs 1,918 crore in the upcoming financial year. This optimism contrasts with the current fiscal performance, where revenue earned as of February 28 stands at Rs 1,136.7 crore against a projection of Rs 1,562.4 crore. MCG Commissioner Pradeep Dahiya emphasized the budget's realism, stating, "Our budget allocations from the last five years are going down. However, our budget is realistic and we want to focus on development." Despite this focus, development expenditure has remained nearly stagnant, showing a marginal decline of 0.02% from Rs 400.1 crore to Rs 400 crore.
Detailed Allocation Breakdown and Priority Adjustments
The approved budget reflects a strategic recalibration of the corporation's fiscal priorities, with sharp increases in operational and maintenance spending, modest adjustments in sanitation allocations, and near-stagnant development expenditure. Key highlights include:
- Infrastructure Investments: Road construction spending has been raised by 10% to Rs 110 crore, while funds for sewerage systems, sewage treatment plants (STPs), and water supply infrastructure have increased by 7.1% to Rs 75 crore. Investment in street lighting, traffic signals, and CCTV infrastructure has surged by 50%, rising from Rs 40 crore to Rs 60 crore.
- Sanitation and Waste Management: The overall sanitation and solid waste management budget has seen a marginal increase of 2.5%, from Rs 390 crore to Rs 400 crore. However, the largest component, door-to-door waste collection and processing, has been reduced by 19.3%, falling from Rs 310 crore to Rs 250 crore. Conversely, several smaller sanitation heads have recorded steep increases, such as spending on hired vehicles, tractors, and trolleys surging by 233.3% to Rs 40 crore.
- Operational Costs: Total operation and maintenance expenditure is set to increase by 26.7%, from Rs 197.3 crore to Rs 250 crore. The purchase of bulk water from GMDA has seen a 35% hike to Rs 135 crore, though current spending as of February 28 already exceeds this at Rs 241.03 crore.
Revenue Sources and Property Monetization
On the revenue side, the corporation expects significant contributions from various streams. Property tax collections are projected to grow by 18.1% to Rs 325 crore, while water and sewerage charges are expected to rise sharply by 60% to Rs 80 crore. Advertisement revenue is also anticipated to increase by 20% to Rs 120 crore.
A substantial portion of the projected revenue increase is driven by property monetization and land-related revenues. Income from the sale of municipal houses and shops is projected to skyrocket by 471.4%, rising from Rs 7 crore to Rs 40 crore, while auction of municipal properties is estimated to generate Rs 75 crore, up from Rs 6 crore last year. This sharp projection follows Rs 108 crore earned under this head during the current financial year, indicating a strategic shift towards asset utilization.
The budget underscores MCG's evolving approach to urban governance, balancing operational needs with developmental aspirations in Gurgaon's dynamic landscape.
